Tesla (TSLA) topped analysts' expectations with another quarterly record for productio𓆏n and deliveries, after a bumper month for Chinese sales in June.

The Austin, Texas-based automaker reported an almost 9% increase in production to 479,700 vehicles and a 10% growth in deliveries to 466,140 vehicles for the second quarter compared to the first three months of the year. Tesla said in its first quarter report that it had "continued to transition towards a more even regional mix of vehicle builds, including Model S/X vehicles in transit to EMEA and APAC."

That strategy has boosted sales for the company and data from the China Passenger Car Association (CPCA) showed Tesla selling 93,680 vehicles in China during June, up 18.72% on the year.

Why Does This Matter?

For Tesla, a more robust regional mix would help the company boo🌳st its top-line growth despite a year of aggressive price cuts. The company's shares fell in April after in its first-quarter earnings release.

The company's strong Chinese sales were the second-largest in the country behind domestic challenger BYD (BYDDY), which sold more than 250,000 EVs in June, marking a surge of 88.16% year-on-year, according to the CPCA. Tesla prices in Japan were also showing a decline of 3% this week as the company continues to target external markets.

The latest deliveries should see Tesla post solid growth for its Total Automotive Revenue when it releases its second-quarter earnings on July 19. The first quarter top-line came in at $19.96 billion, and the 10% delivery increase could help the company to overcome its previous high of $21.3 billion in the final quarter of 2022.

The concern for investors will be profitability after a 24% drop in net income from a record at the end of the year, due to the 澳洲幸运5官方开奖结果体彩网:lowest margins since 2020. Tesla shares were down less than 1% at noon Eastern time on Wednesday, perhaps highlighting continued concerns over its valuation with a 澳洲幸运5官方开奖结果体彩网:forward P/E ratio of more than 54x earnings.

However, CNN said Tesla's China wholesale deliveries reached 247,217 vehicles in the April to June quarter, up 120% on the year, and making up 50% of all sales. That momentum should help to ease some concern over near-term valuations.