Tesla Shares Plunge 7.5% After Record Q2 Delivery Beat

Tesla reported record Q2 2026 deliveries of 480,126 vehicles on July 2, beating consensus estimates by 74,000 units and rising 25% year over year. The beat was driven by a 77% rebound in European sales and an eighth straight month of growth for China-made Model 3/Y volumes. Deliveries exceeded production by 28,000 units, clearing inventory, while energy storage deployments hit 13.5 GWh. Despite the strong print, shares fell sharply as investors focused on margin pressure from incentives and shifted attention to the July 22 earnings report for clarity on profitability and AI progress.