S of Tesla (TSLA 4. 77%) traded 3. 3% higher, as of 11:03 a. ET today, after trading nearly 5% higher earlier today.
The move came after the electric carmaker reported deries for the second quarter of the year in a highly anticipated event for the company.
Another disappointing quarter Tesla dered 384,000 vehicles in the second quarter of the year, down 14% year over year.
The number came in slightly below Wall Street's estimate of 387,000, according to FactSet.
Tesla also reported disappointing deries in its seasonally weaker first quarter of the year of slightly below 337,000, down 13% year over year. Image source: Getty Images.
Although Tesla missed Wall Street estimates, most investors expected a bad quarter of deries, given intra-quarter data and reports that indicated the electric carmaker's sales continued to struggle, especially in Europe and China.
Initially, many believed that Tesla CEO Elon Musk's involvement with government affairs, including the Department of Government Efficiency (DOGE), had frustrated many of Tesla's core customers, leading them to trade in their vehicles or select other brands.
However, competition also appears to be an issue for Tesla, as rival EV makers are releasing cheaper EVs with better capabilities. However, some think this quarter could mark a bottom for Tesla.
Gene Munster, a managing partner at Deepwater Asset Management, wrote on X this morning that deries came in better than he expected, and he thinks deries will trend better in the back half of the year.
The EV may not matter Tesla's second-quarter deries once again shows why the stock does not trade on fundamentals, and ultimately why the EV may not matter.
The company missed estimates -- and its stock is still trading higher. This is nothing new for Tesla, showing why investors are not concerned the EV and are almost solely focused on robotaxis.
But with Tesla's stock trading at a monster valuation, I continue to be on the sidelines. Bram Berkowitz has no position in any of the stocks mentioned.
The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.