Tesla made a strong comeback in the second quarter of 2026, delivering a record 480,126 electric vehicles globally, up 25% from 384,122 vehicles in the same quarter last year and about 34% higher than the 358,023 vehicles delivered in the first quarter of 2026. The result was much stronger than expected, as analysts had forecast deliveries of around 402,000-406,000 vehicles. Tesla exceeded those estimates by around 74,000-78,000 vehicles, making it one of the company’s biggest positive surprises in recent years.
Most importantly, the performance also marked Tesla’s best quarterly delivery total since the third quarter of 2025 and eased concerns that demand for its vehicles was slowing. The recovery was mainly driven by stronger demand in Europe and China, although sales in North America remained relatively weak. In Europe, higher fuel prices encouraged more buyers to switch to electric vehicles, while Tesla also recovered from a difficult 2025 when political controversies involving CEO Elon Musk had hurt the brand in several countries.
During the first five months of 2026, Tesla registered 118,068 vehicles across Europe and the UK, a 57% increase from a year earlier. At the same time, in China, the company’s Shanghai Gigafactory continued to perform strongly. Tesla sold 89,091 China-made vehicles in June, up 24.4% year over year, while sales and exports from the Shanghai plant increased about 33% during the April-June quarter, supported by strong demand for the refreshed Model Y.
Tesla continued to rely heavily on its two best-selling models. Of the 480,126 vehicles delivered, 467,762 were Model 3 and Model Y vehicles, accounting for more than 97% of total deliveries. The remaining 12,364 vehicles came mainly from the Cybertruck and other models. Earlier this year, Tesla stopped producing the Model S and Model X to focus its manufacturing capacity on newer products and future technologies. Beyond vehicles, the company also expanded its energy business by deploying 13.5 gigawatt-hours (GWh) of energy storage systems during the quarter, compared with 9.6 GWh in the same period last year.
The quarter also showed improvement in Tesla’s operations. The company produced 451,758 vehicles but delivered 480,126, meaning it sold more vehicles than it built during the quarter. This helped reduce inventory that had built up during the weaker first quarter and improved cash flow. Tesla had started 2026 under pressure after the expiration of the $7,500 U.S. federal EV tax credit, which reduced demand in its home market. The strong second-quarter delivery figures suggest the company was able to recover despite those challenges.
However, competition remains intense. Chinese EV giant BYD delivered around 557,090 battery-electric vehicles during the same quarter, keeping its lead over Tesla in global pure electric vehicle sales. In the first half of 2026, BYD sold about 867,000 battery-electric vehicles, compared with Tesla’s 838,149. It is important to note that while automobiles still generate about 75% of the company’s revenue, the Elon Musk-led firm is investing heavily in AI, autonomous driving, robotaxis and the Optimus humanoid robot.
The Tech Portal is published by Blue Box Media Private Limited. Our investors have no influence over our reporting. Read our full Ownership and Funding Disclosure →
Ashutosh is a Senior Writer at The Tech Portal, largely reporting on new tech, and intersection of technology and business. Ashutosh’s career spans across nearly a decade of technology writing across multiple platforms and languages.
