By
Svetlana Soroka
April 18th, 2024
Tesla is faced with heightened competition in many parts of the world, which made the company consider cutting prices this year.
Shares of electric vehicle maker Tesla Inc (NASDAQ: TSLA) pumped almost 7% on Monday as the company reported solid figures for Q2 deliveries and productions. The company recorded stronger-than-expected numbers after cutting prices to boot sales. Tesla reduced its prices in selected markets such as China, the US, and the US. At the time of lowering costs, CEO Elon Musk said seeking higher sales with lower profits seems the perfect choice for the company.
Tesla Beats Expectations in Q2 2023 Deliveries and Production
For Q2, which ended on June 30, 2023, Tesla deliveries were 466,140 vehicles. The deliveries are over 20,000 cars above analysts’ expectation of 445,925. In addition to the discounts that fueled the delivery numbers, a $7,500 federal tax credit under Inflation Reduction Act in the US also propelled the figures. Tesla also said it upped its vehicle production to almost 480,000 within three months. In reaction to the Tesla Q2 deliveries and productions, the founder and chief executive of advisory firm Automobility, Bill Russo, said, “Tesla has made a strategic choice to be a volume manufacturer.” He also mentioned that Model 3 and Model Y benefited from the price cut, which triggered the sales increase.
Wedbush analysts Dan Ives also weighed in on how Tesla did in Q2 concerning deliveries and production. He commended the EV maker for lowering the price in China, referring to it as a “smart poke move that was massively successful for Tesla”.
Tesla is faced with heightened competition in many parts of the world, which made the company consider cutting prices this year. After acknowledging that lower prices have affected its products, the manufacturer said in April that it did not have plans to stabilize the prices of its vehicles. The CEO said the purpose of bringing the prices down is to “enable affordability at scale”.
Meanwhile, Li-Auto also said its deliveries hit an ATH of 32,575 in June. The company saw its third consecutive monthly sales record last month. At the same time, Shanghai-based Nio and Guangzhou-based Xpeng also reported high deliveries in June. While Nio delivered 10,797 vehicles, Xpeng’s deliveries grew to 8,620.
Following the company’s poor financial performance in 2022, Tesla shares have rebounded and consistently increased. The EV giant has grown 127.16% since the year began and is up 23.13% over the past year. The company also gained 43.67% in the three months and another 28.59% over the past month. In the last five days, TSLA has added 16.08%.
In the after-hours session, Tesla stock is down 0.34% to $278.87 after closing up 6.90% to $279.82.