Investors were increasingly anticipating a bad number, given several recent reports of sales weakness in Europe and China. To add to the anxiety, Tesla Chief Executive Elon Musk renewed his feud with President Donald Trump this week by criticizing the budget bill that barely passed the Senate.

It was the worst quarterly decline in the company’s history. Still, the result was better than feared and up from the 337,000 delivered in the first quarter of 2025. The latest analysts’ estimates heading into the report were in the range of 355,000 vehicles.

Tesla shares rose 3% shortly after markets opened Wednesday even though the electric vehicle maker reported worse-than-expected second-quarter deliveries and production figures.