Tesla Delivered 466,140 Cars In 2nd Quarter, Beats The Estimates
On Sunday, Tesla Inc. announced that it delivered more cars during 2nd quarter than the market estimates. According to experts, the US federal credits and the recent price cuts have allowed Tesla to make its cars more affordable for the general public.
During the 2nd quarter of 2023 (April - June), around 466,140 vehicles were delivered to customers, which is a jump of 10% from the 1st quarter. And if we look at the numbers from last year, that's a jump of almost 83%.
For the most part, analysts were expecting Tesla to only deliver around 445,000 electric cars, while the highest estimate was for only 45,000 cars. But it turns out that the actual value is 16140 higher than the estimate set by the experts.
Price Cuts - A Smart Move From Tesla
Wedbush Securities analysts believe that the recent price cuts on electric cars were a smart move by Tesla which allowed it to exponentially grow its sales. One of the biggest markets for Tesla was China, and the recent price cuts have also played to Tesla's strength.
In fact, Tesla's car sales may hit a new record in the Chinese market which it the 2nd largest market for the company after North America. This comes at a time when Tesla is facing fierce competition from BYD, a market leader in China.
But the price cuts also mean margins will also take a cut during the next few quarters. However, the real question is whether Tesla will manage to balance it with more sales or not.
Just last year, Tesla announced price cuts starting from the Chinese market which errored the margins during Q1. This was further strengthened by Elon Musk's comments that the company will now focus on sales growth first rather than profits due to rising competition.
Looking ahead, Tesla might manage to improve its profits if the current trend in car sales continue to rise upwards.