Tesla, the electric vehicle (EV) manufacturer owned by Elon Musk, has surpassed Wall Street delivery estimates in the second quarter of 2023. This achievement is attributed to the company’s various price cuts and the implementation of federal electric vehicle tax credits by the Biden administration.
Tesla reported a record global production of 479,000 units and a record delivery of 466,140 units in the quarter. This represents a 10% increase from the 422,875 EVs delivered in the first quarter and an impressive 83% year-over-year growth. Delivery numbers are considered more indicative of actual sales, although Tesla does not publicly release its sales figures.
The majority of Tesla’s deliveries comprised Model 3 and Model Y vehicles, with 460,211 units delivered, compared to 19,489 units of the higher-priced Model S and Model X. Approximately 5% of Tesla’s sales were subject to lease accounting.
Data from the China Passenger Car Association suggests that about half of Tesla’s deliveries originated from its Shanghai gigafactory. While sales numbers for June have not yet been released, Tesla delivered 75,842 China-made EVs in April and 77,695 in May, with approximately 82,610 units delivered to mainland China during those two months.
In the second quarter, Tesla’s Model 3 vehicles became eligible for the full $7,500 EV tax credit in the United States, further boosting sales. However, investors will closely monitor the impact of the price cuts on the company’s margins. In the first quarter, Tesla reported a 24% decrease in net income compared to the same period the previous year.
Tesla is scheduled to release its second-quarter earnings on July 19, providing further insights into the company’s financial performance during this period.
