Tesla shares sank about 7.5% on July 2, their worst single-day decline in nearly a year. The drop came even after the company reported second-quarter deliveries far above Wall Street's expectations.
The selloff came just three trading days after Tesla stock jumped more than 8% on optimism around a new self-driving software rollout.
Tesla reported 480,126 vehicle deliveries for the second quarter, against a company-compiled consensus of 406,024 and a StreetAccount estimate of 406,600. Production came in at 451,758 units.
The result marked a 25% jump from the same period last year. It also represented a 34% increase over the first quarter's 358,023 deliveries. Tesla also shipped more cars than it built, drawing down inventory that had ballooned earlier in the year.
Much of the setup traces back to June 29. Tesla shares posted their biggest single-day gain in over a year after the FSD v14 Lite update rolled out. The update reached older Hardware 3 vehicles for the first time in more than a year. That rally already reflected rising expectations for the delivery report itself.