Tesla Sets New Electric Vehicle Delivery Record Following Federal Tax Credits and Price Reductions
Tesla Surpasses Delivery Expectations with Record Q2 Performance Driven by Tax Credits and Price Reductions
chandni
During the second quarter of 2023, Tesla exceeded Wall Street's delivery estimates, capitalizing on a series of price cuts and the federal electric vehicle tax credits introduced by the Biden administration.
The renowned electric vehicle manufacturer, led by Elon Musk, achieved a remarkable global production record of 479,000 units, with deliveries reaching an all-time high of 466,140. This represents a 10% increase compared to the 422,875 EVs delivered in the first quarter and an impressive 83% surge year-over-year. Market analysts and investors consider delivery figures more reliable indicators of actual sales, as Tesla does not disclose specific sales numbers.
The majority of Tesla's deliveries were comprised of the Model 3 and Model Y vehicles, while the more expensive Model S and Model X vehicles made up a smaller portion. Specifically, Tesla delivered 460,211 units of the Model 3 and Model Y, along with 19,489 units of the Model S and Model X. The company stated that approximately 5% of its sales were subject to lease accounting.
Notably, a significant portion of these deliveries can be attributed to Tesla's gigafactory in Shanghai, as suggested by data from the China Passenger Car Association. While the sales figures for June are yet to be released by the CPCA, Tesla delivered 75,842 China-manufactured EVs in April and 77,695 in May. Out of these, around 82,610 vehicles were delivered in mainland China during April and May combined.
In the United States, the second quarter saw Tesla's Model 3 vehicles becoming eligible for the full $7,500 EV tax credit, aligning them with the company's other models.
While Tesla's price cuts in various countries, including the U.S. and China, have undoubtedly contributed to increased sales, investors are keen to assess their impact on profit margins. In the first quarter, the reduction in prices did impact the company's net income, resulting in a 24% decrease compared to the corresponding period the previous year.
Investors and market observers eagerly await Tesla's earnings announcement on July 19, which will shed more light on the company's financial performance in the second quarter.
