Tesla delivered 480,126 vehicles worldwide in the second quarter, a 25% increase on the same period last year and a figure that easily surpassed both a Bloomberg consensus estimate of 396,466 and the company’s own compiled forecast of 406,024. The result marks a second consecutive quarter of sales growth and suggests the electric-vehicle maker is recovering from a slump that saw deliveries fall sharply in 2025 amid a broader US market contraction and a wave of consumer protests against CEO Elon Musk’s political interventions. In premarket trading, Tesla shares rose as much as 2% before paring gains; the stock remains down roughly 5% year-to-date, according to Interfax.

The rebound was fuelled in part by a spike in global fuel prices triggered by the Middle East conflict. Average US petrol prices climbed from under $3 per gallon in February to a peak of $4.56 in May, data from AAA show, making electric vehicles more attractive to cost-conscious buyers. Stephanie Valdez-Streaty, director of industry insights at Cox Automotive, noted that the boost was particularly pronounced in Europe, where EV sales have surged in recent months. In Germany, Tesla registrations reportedly jumped 300% in May, while the Netherlands, Estonia, Greece and Lithuania have recently approved the use of Tesla’s “Full Self-Driving (Supervised)” driver-assistance system, potentially widening the company’s addressable market on the continent.

In the United States, the picture is more mixed. The expiry of the $7,500 federal EV tax credit in September 2025 contributed to a 27% drop in overall electric-vehicle sales in the first quarter, and much of the subsequent growth in alternative-fuel vehicles has come from hybrids—a segment Tesla does not serve. Nevertheless, the company’s ability to beat expectations for a second straight quarter has eased fears that the backlash against Musk’s political activities would cause lasting brand damage. European consumers, who had staged showroom protests and acts of vandalism last year, appear to be returning, though Tesla does not disclose regional sales data.

Musk has simultaneously shifted the company’s public focus away from pure car sales. In January, Tesla announced it would end production of its premium Model S and X to free factory space for the Optimus humanoid robot, and it is ramping up output of the Cybercab, a gold-coloured robotaxi without a steering wheel or pedals. The robotaxi rollout remains limited, with only a few dozen vehicles operating in Austin, Houston and Dallas a year after launch. Meanwhile, SpaceX’s record $85 billion IPO has pushed its valuation to almost $480 billion above Tesla’s, prompting some investors to float the idea of a merger—a possibility SpaceX President Gwynne Shotwell did not rule out, citing “synergies” between the two firms. Tesla will publish full second-quarter financial results on 22 July, providing the next concrete measure of whether the sales recovery is translating into improved margins.