Deepwater's Gene Munster on why Tesla is seeing strong demand

Summary

Gene Munster analyzes Tesla's strong Q2 delivery beat, dissects the factors behind the demand surge, and argues the numbers mark the end of the EV winter. He views the subsequent 8% stock drop as a buy-the-rumor-sell-the-news event and believes Tesla shares would rise if the market accepted the sustainability of the growth.

• Tesla reported Q2 deliveries up about 25% year-over-year, well above prior trends.
• Gene Munster estimates underlying growth of 20% even without the benefit of higher gas prices.
• He attributes demand to pent-up adoption, rising consumer openness to EVs, and a brand tailwind from the end of DOGE.
• The stock sold off 8% after the number, which he describes as a classic buy-the-rumor, sell-the-news reaction.
• Investors remain skeptical about the sustainability of the delivery growth.
• Munster believes that if the market accepted the recovery as durable, Tesla shares would be trading higher.