While Tesla stock rises, sales fall dramatically

On Wednesday, Tesla shares surged significantly, but its latest earnings report showed declining sales globally.

Parked Tesla cars.

Tesla announced its pivotal second quarter earnings call on Wednesday morning via their website. The report was slightly better than investors' expectations in terms of total cars produced, surpassing 410,000 vehicles compared to investors' expectation of roughly 400,082 cars. As a result, investors bought into Tesla stock Wednesday and, as of noon, it has surged by over 4% in share price.

Tesla has faced pressures to reduce production amid falling demand for its vehicles. Foreign competition in European markets, as well as far more EV competition at home in the American market, caused demand for their EVs specifically to decline while others to grow. Since then, Tesla's market share in the EV market has substantially declined.

But this news shows that the EV company is attempting to keep production high to satiate demand for its new "Robotaxi" system in the United States, a network of self-driving electric vehicles.

However, the rest of the data was very worrying for the automobile company. The company's deliveries fell by 13% compared to a year prior. Investors were predicting a much lower decline in deliveries than this, a worrying sign that demand for Tesla vehicles is falling at a faster rate than expected.

This data corresponds with what was found in the European market last month. In the month of May, sales across Europe fell for the fifth consecutive month. Tesla EV registrations fell by nearly 28% according to the European Automobile Manufacturers Association (ACEA).