Tesla delivers 480,000 vehicles in Q2 but BYD keeps the global EV crown

Tesla (NASDAQ: TSLA) surpassed Wall Street’s sales expectations and shipped 480,126 vehicles in the second quarter of 2026. 

The EV company shipped 74,000 more units than expected but still failed to outsell BYD. That relative underperformance could be part of the reason the EV maker’s stock has failed to follow the positive news it delivered in its own report.

Are customers buying Tesla’s EVs?

Tesla (NASDAQ: TSLA) delivered 480,126 vehicles in the second quarter of 2026, 25% higher than the same time last year, despite Wall Street predicting that Tesla would only deliver about 406,000 vehicles. The company beat the forecast by around 74,000 cars.

Tesla’s Model 3 and Model Y made up most of the sales, accounting for 467,762 deliveries. Other models, including the Cybertruck and the higher-end Model S and X, made up just 12,364 units.

The company only produced 451,758 vehicles during the quarter, meaning about 28,000 of the shipped cars were from its existing inventory.

In the first quarter of 2026, Tesla delivered 358,023 vehicles. These Q2 figures represent a 34% increase in just three months. Only three quarters in Tesla’s history have been bigger: Q3 2025 (497,099), Q4 2024 (495,570), and Q4 2023 (484,507).

Tesla registrations across Europe reached 28,610 in May, a nearly 108% increase in the number from the same month last year. Year-to-date registrations through May reached 118,068 vehicles, a 57% increase. Within the European Union alone, May registrations more than doubled, climbing 152%.

However, in the United States, sales dropped. The federal EV tax credit expired, which made electric cars more expensive for many buyers. Cox Automotive said Tesla’s domestic sales fell 20% because of this change.

Deutsche Bank analyst Edison Yu said Tesla’s international sales in both Europe and China helped a lot. The company’s growth in Europe happened due to the competitive deals buyers were offered. Some buyers disagree with CEO Elon Musk’s political views, but the pricing was good enough for them to look past the controversy.

Tesla also deployed 13.5 gigawatt-hours (GWh) of energy storage in Q2, representing a 53% increase from the 8.8 GWh in Q1 2026. This number missed the mark on analysts’ expectations of 13.8 GWh.

Why is BYD still outselling Tesla?

BYD retained its position as the world’s top electric car seller, reporting 557,090 fully electric vehicle sales for Q2 2026. BYD announced its numbers one day before Tesla released its results.

BYD’s lead over Tesla is roughly 77,000 vehicles. BYD’s quarterly volume dropped 8% year over year from a higher peak, but its overseas sales are growing fast. About 43% of BYD’s sales in Q2 came from outside China.

On July 2, 2026, BYD’s stock closed at 83.57 Chinese Yuan (CNY) on its Shenzhen listing (SHE: 002594), up 3.61%. Its Hong Kong-listed shares (HKEX: 1211) closed at 78.30 Hong Kong dollars (HKD).

Meanwhile, Tesla’s stock (NASDAQ: TSLA) traded around $391 on July 2, down nearly 8% on the day. Tesla’s Q2 earnings call on July 22 will reveal whether Tesla kept its profit margins or sacrificed them with aggressive pricing.

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