Tesla's sales slumped for a second quarter, but things weren't as bad as investors feared

• Tesla sales were down nearly 5% in the second quarter.
• The performance wasn't as bad as analysts expected.
• Tesla's stock rose more than 8% following the news.

Tesla's sales fell for a second straight quarter, down nearly 5% compared to the same period a year ago.

While the decline in deliveries is yet another sign that an industry-wide EV slowdown is finally affecting Elon Musk's Tesla, Tuesday's numbers were not as bad as some analysts had expected, sending the stock up more than 8%.

Longtime Tesla bull Dan Ives of Wedbush called Tesla's second quarter sales results "a huge comeback performance" for Musk's EV company.

"In a nutshell, the worst is in the rearview mirror for Tesla as we believe the EV demand story is starting to return," Ives wrote in a note to clients.

Tesla reported second-quarter sales of 443,956 units Tuesday morning, down about 4.7% from the same quarter a year ago — but above Wall Street expectations.

Analysts polled by Bloomberg had expected Tesla to deliver 439,302 cars in the quarter, a roughly 6% decline compared to last year.

Tesla is graded on a curve

When gauging Tesla's performance, it's important not to get bogged down in the hard numbers. At least, so say its most ardent supporters.

In the first quarter, Tesla reported a huge earnings miss after posting some of its worst delivery results in years. And yet, Tesla's stock reversed a weekslong free-fall in the days following the earnings report.

Despite a list of unkept promises a mile long, Musk keeps investors' trust by consistently defying expectations when his back is against the wall. Take, for example, the once-doomed Model 3.

Since first feeling the pinch of the EV slowdown at the start of this year, Tesla's barometer for success on Wall Street no longer appears tied to its growth.

Rather, Musk and his EV company are rewarded handsomely so long as the company's performance is not as bad as we all expect and Musk provides Wall Street with a plan for even more growth in the future.

Most recently, that plan has hinged on an AI-driven robotaxi fleet that Musk will provide more details on in August.

Tesla will also release its second-quarter financial results on July 23 after market close.