As gas prices rose in the spring, renewed interest in EVs led to a spike in Tesla sales as the carmaker delivered more than 480,000 vehicles in Q2, it stated during Wednesday’s earnings report.
Driving the news: Tesla bounced back in vehicle sales from a two-period downward trend with its best quarter since the third quarter of 2025, when it delivered 497,000 ahead of the expiration of the Clean Vehicle credit.
The EV carmaker saw a 25% increase year-over-year.
Tesla’s leasing market dropped by 18% to 141,876 units.
Overall automotive revenues were up 23% at $20.5 billion.
What they’re saying: “It’s been a great quarter; we achieved record Q2 deliveries,” said Tesla CEO Elon Musk during the earnings call. “The Model Y, I believe, is now the best-selling car of any kind in the world and is setting records across the board.”
Additionally, Musk said in areas where full-self driving is approved, customers are buying “Tesla full-self driving” with the car attached.
During the call, it was reported that 55% of its North America deliveries had an FSD subscription at the time of delivery.
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Bottom line: Despite the strong quarter of automotive sales, Tesla’s profit margin was down YOY at 1.4%. But the automaker continues to grow in popularity around the world, with deliveries now topping 9.7 million.
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