Tesla’s lease penetration declined in the second quarter in tandem with a drop in sales and production.
The EV maker delivered 384,122 vehicles in Q2, down 13.5% year over year but up 14.1% quarter over quarter, according to the automaker’s July 23 earnings presentation. Of vehicles delivered, 1.7% were leased, down 60 basis points (bps) YoY and 230 bps QoQ.
The company’s lease portfolio stood at $5.2 billion, down 5.6% YoY and 4.5% QoQ. In fact, Folsom, Calif.-based EV financier EV Life has seen an uptick in Model Ys hit the used market as more come off-lease, Peter Glenn, founder and co-CEO, previously told Auto Finance News.
Tesla produced 410,244 vehicles in Q2, down 0.1% YoY but up 13.1% QoQ. Global vehicle inventory rose to 24 days’ supply compared with 18 days in Q2 2024 and 22 days in Q1.
Meanwhile, the end of the federal EV tax credit under the One Big Beautiful Bill Act has prompted Tesla to “limit the supply of vehicles in the U.S.,” Vaibhav Taneja, chief financial officer, said during the company’s earnings call.
“We have rolled out all our planned incentives already and we’ll start paring them back as we start to sell.” — Vaibhav Taneja, CFO, Tesla
“We have rolled out all our planned incentives already and we’ll start paring them back as we start to sell,” he said. “If you are in the U.S. and looking to buy a car, place your order now as we may not be able to guarantee delivery orders placed in the later part of August and beyond.”
Tesla is also likely to lose revenue tied to selling regulatory credits to other automakers looking to comply with emissions standards as the act reduces the penalty, Taneja said. The bill eliminates the civil penalty for failing to meet Corporate Average Fuel Economy standards.
“While we now plan our business around such sales, it will nonetheless impact our total revenues going forward,” he said.
Tesla’s automotive revenue in Q2 totaled $16.7 billion, down 16.2% YoY but up 19.3% QoQ, according to the presentation. Gross profit was $3.9 billion, down 15.3% YoY and up 23% QoQ.
Shares of Tesla [Nasdaq: TSLA] were trading at $304.28 as of 1:22 p.m. ET today, down 8.5% from market open. Tesla has a market capitalization of $948.9 billion.
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