Tesla Surpasses Second-Quarter Delivery Estimates Amid Price Cuts
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Electric vehicle manufacturer, Tesla, has announced that it delivered a record number of vehicles during the second quarter. The figure provided by the EV maker topped market estimates amid price cuts and federal credits by the US government.
Tesla surpasses Q2 delivery estimates
Tesla, which is currently the largest EV maker, delivered 466,140 vehicles during the second quarter. The number of vehicles delivered between April and June this year was a 10% increase compared to the previous quarter. The figure was an 83% increase from the previous year.
On average, analysts had expected that Tesla would deliver 445,000 vehicles, according to nine analysts that were involved in a survey by Refinitiv. The lowest estimate that was provided by the company was 439,875, while the highest was 450,000. Tesla has delivered 446,915 Model 3 cars and Model Y sport-utility vehicles.
Tesla is the most valuable automaker globally, and it delivered an additional 13,560 more vehicles than what was delivered previously. However, the gap in the number of cars delivered has narrowed from the 17,933 that were delivered during the first quarter.
Analysts believe that one of the factors that triggered the increase in the number of vehicles was the price cuts announced by the company. The price cuts have triggered a notable increase in demand for Tesla vehicles.
Tesla’s growing interest in China
The other factor that has also enabled Tesla to surpass delivery estimates is paying significant dividends in the sector, especially in the Chinese market. China has concentrated a majority of its efforts in China in a bid to ramp up production.
Analysts also expect that Tesla will reach record sales in the Chinese market. China is the second-largest market for the EV maker after the US. Tesla is gaining inroads in China despite the still competition posed by other automakers in China, such as BYD. However, in the subsequent quarters, the company’s margins might start to trough.
Tesla has already introduced price cuts in China. The EV maker started trimming prices in the Chinese market in late 2022. The decision led to the EV maker recording a drop in the margin reported for the first quarter.
Tesla’s CEO, Elon Musk, has also been a big proponent of the price cuts. In April, Musk said that the EV maker would focus its attention on sales growth instead of profits. He attributed the decision to trim prices to a weak economy and growing competition.
Tesla has since increased the discounts across all the line-ups. The move has been attributed to a decision to reduce the inventory while also ensuring that the Model 3s was eligible for the full federal credits worth $7,500 from June across the United States.
Tesla is leading the competition in the EV industry, given its advantage of being among the first players. The company is setting charging standards in the EV space. Other automakers, such as Ford and General Motors, have said that they will be using the North American Charging Standard (NACS).
