CNBC's Phil LeBeau joins 'Squawk on the Street' to discuss the latest delivery numbers from Tesla.

Austin

Tesla reported delivering 384,122 vehicles in the second quarter, marking a 14% decrease compared to the previous year. Despite the decline, the figure was close to the consensus estimate of 387,000 and exceeded some analysts' lower expectations. Production for the quarter reached 410,244 vehicles, outpacing deliveries.

The company continues to benefit from regulatory credits related to greenhouse gas emissions, which remain unchanged. In China, Tesla saw a rise in shipments for the first time in several months, though the market remains highly competitive and price wars continue to impact profitability.

Tesla reports 14% decline in vehicle deliveries

All right, speaking of which, Tesla's not a part, of course, of the new acronym from Jim, but they do have their delivery figures out for the second quarter, and Phil LeBeau has them for us. Phil, how are they looking? They're roughly in line with expectations, David, 384,122 vehicles delivered in the second quarter by Tesla. The consensus estimate on FactSet going into this morning was 387,000. I wouldn't call this a miss. I'd say roughly in the neighborhood of what people were expecting. We should point out the production coming in at 410,244 vehicles. If you're looking at shares and saying, well, that's a decent little pop on shares of Tesla on these delivery numbers, keep in mind that there were a number of analysts, and I read probably 10 notes in the last couple of days. A number of those analysts were expecting the delivery number to come in closer to 355,000, maybe 360,000. So a little bit better than some of the analysts were expecting, Tesla delivering 384,122 vehicles, just shy of the consensus estimate of 387,000. Guys, we'll send it back to you. Yeah, and we can see the stock is reacting positively to that. Phil, yesterday it was a lot of back and forth as well between sort of us. As I tried to understand, you know, we were trying to make the, we were trying to explain the difference between regulatory credits that Tesla has lived off of to help boost earnings in terms of greenhouse gas emissions versus the big, beautiful bill, which is doing away with the tax credits that buyers get when they buy it. But on that other side, which has been so important to Tesla, I just, I know you've done reporting on this and I've been asking you about it. Nothing has changed as of now. Is that correct? Correct. Correct. Nothing has changed and that is tied into the greenhouse gas emissions. If the EPA and the White House at some point make a move to make a change there, that may have huge implications for Tesla. But those zero emission vehicle credits of which you pointed out yesterday, I think last year it was $2.4 billion that they received money from other automakers and other companies outside of the auto industry where those companies need those credits in order to meet greenhouse gas emission standards. They buy those credits from Tesla, from other companies. Rivian sells greenhouse gas emission credits. So that's, that's how that stands right there, David. That's very real money to the bottom line of Tesla. But that has not changed at all. The big beautiful bill completely focused on the $7,500 credit that you or I or anybody would get for buying an electric vehicle. That's the change that's happening there. And I think that the plan, according to the Senate, the bill that was passed by the Senate, that $7,500 discount, it goes away after September 30th. Let's see if the change is now that it's back in the house, but that's where things stand right now. All right. I think one of the things people are excited about is the China numbers, shipments rise in June, first time in 2025. I wouldn't get excited, but I would say if you're a Tesla investor, this is welcome news. I think it was five straight months, six straight months where you had declining sales. And now that you have the Juniper models that are over there, you know, filtering into the deliveries, it's clear that they perhaps have built a floor in there, Jim. But that market is so brutally competitive. One month is not enough to say, OK, well, the worst is over in China. Who knows what this is going to look like over the next couple of months? Because you know, we really don't know if the price war is over in China when it comes to electric vehicles. And that really has been killing, killing Tesla, killing all automakers, because what's happening there is too much capacity, building too many vehicles. So what do these automakers do in China? They slash their prices. And that's what's really killing profitability over in that market right now. Phil, thank you. Phil Lebeau, of course, with those latest U.S. numbers from Tesla. You can see, of course, that is helping the stock.

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