Tesla reported quarterly deliveries of 480,126 vehicles, coming in well above consensus estimates and even topping the high end of bullish projections. The beat snaps a streak of disappointing delivery prints that had weighed on sentiment and gives the stock a clear short-term catalyst. The delivery number is the most visible demand signal Tesla publishes before full financials.

The enrichment data, however, frames a more complicated picture. FY revenue of $94.8B is actually down 2.9% year-over-year, gross margins sit at 18.0%, and net margins have compressed to just 4.1% on $1.08 diluted EPS. That combination — strong units, falling revenue, thin margins — points squarely at aggressive price cuts as the mechanism driving volume.

The bull case is straightforward: a delivery beat at this scale re-establishes demand credibility, reduces near-term short pressure, and gives Tesla a positive narrative heading into the full earnings print where energy, software, and FSD revenue can flesh out the story. Bears will counter that the revenue decline and margin compression show Tesla is essentially buying market share, and that the unit beat is already priced in after the immediate stock pop.

The key variable to watch into earnings is whether management signals a floor on pricing or hints at margin recovery in H2. Any deterioration in average selling price or further gross margin compression below 17% would likely unwind the delivery-beat bounce quickly.