Tesla just had its best Q2 deliveries ever

Signals Inbox·July 2, 2026·Electric Vehicles

Tesla had plenty going against it: no EV credit, slower growth, China pressure, Musk noise, and brand fatigue worries. And yet, it still hit a record Q2.

Q1What actually happened?

Tesla reported more than 480,000 global vehicle deliveries in Q2, its strongest second quarter ever. Most of that came from the Model 3 and Model Y, which are still the company’s real volume machines.

Q2Why is this surprising?

Because the setup was not easy. The U.S. federal EV tax credit ended last year, which effectively made many EVs feel thousands of dollars more expensive overnight. On top of that, Tesla had been dealing with slower growth, more competition from Chinese EV makers, political noise around Elon Musk, and doubts about whether the brand was losing momentum. Then it still delivered a record Q2.

Q3Did Elon Musk say something about the credit?

Yes. Musk has argued before that removing EV subsidies could hurt Tesla’s competitors more than Tesla. The logic is pretty simple: Tesla already has scale, strong margins, factories, charging infrastructure, and a huge brand. Smaller EV makers and legacy automakers trying to catch up often need more help to make the economics work. So removing the credit can make the weak players look weaker.

Q4So does this prove people still want Teslas?

Yes, but with nuance. Some demand may have been helped by high gas prices, refreshed models, discounts, financing offers, and people rushing into the newer Model Y.

Q5What was the Tesla context before this?

The mood had actually turned darker. Tesla was no longer seen as the automatic EV winner. BYD was scaling hard. Legacy automakers were discounting. Some buyers were annoyed by Elon Musk. Investors were worried Tesla was talking more about robotaxis and humanoid robots than selling cars. So a record Q2 is a useful reminder: the car business is still very alive.