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Rowan Street Capital highlights Tesla progress in Q2 2026 investor letter
The fund said Tesla exited Q2 with its largest order backlog since 2023, and noted production is increasingly constrained by supply rather than demand.
Rowan Street Capital, an investment management firm, released its Q2 2026 investor letter and spotlighted Tesla as part of its outlook, according to Yahoo Finance. The letter argued that stock prices in some holdings faced pressure in 2026, even as the underlying businesses performed effectively.
In the update, Rowan Street said Tesla achieved record Q2 deliveries and left the quarter with its largest order backlog since 2023. It also pointed to management commentary that Tesla’s production is increasingly constrained by supply rather than demand.
The fund further said Full Self-Driving is becoming a primary driver of customer demand, framing it as a shift toward customers buying FSD alongside a vehicle. It added that Robotaxi operations continued to scale during the quarter, with autonomous miles driven increasing by more than 10% each week and Tesla expanding service to seven U.S. markets, including Texas, Florida, and the San Francisco Bay Area.
Rowan Street also described portfolio performance in the letter, saying performance remained stable in Q2, with the portfolio declining about 1% from Q1 and producing a net return of -21% for the second half of 2026. It emphasized patience and long-term business performance over short-term market enthusiasm.