Tesla set a new record for the supply of electric cars amid lower prices and federal tax breaks in the US
Tesla beat Wall Street forecasts for second-quarter 2023 deliveries thanks to multiple price cuts and federal tax breaks for electric cars proposed by the Biden administration, reports TechCrunch. The Elon Musk-owned company reported record global production of 479,000 units and record deliveries of 466,140 electric vehicles (EVs).
That’s up 10% from the first quarter, when 422,875 Tesla electric cars were delivered, and up 83% from last year. Analysts and investors often focus on supply figures rather than production numbers because they provide a more accurate picture of actual sales figures, which Tesla does not disclose.
The majority of Tesla’s deliveries are Model 3 and Model Y vehicles, with a total of 460,211 units. In contrast, the company delivered 19,489 units of its more expensive Models S and X. Tesla said leasing accounting applied to 5% of its sales.
About half of the supply is likely to come from Tesla’s gigafactory in Shanghai, according to the China Passenger Car Association (CPCA). While the CPCA has yet to release sales figures for June, Tesla delivered 75,842 Chinese-made EVs in April and 77,695 in May. Of those, about 82,610 were delivered to mainland China in April and May.
In the second quarter in the US, Tesla Model 3 cars became eligible for a full $7,500 electric vehicle tax credit, joining the company’s other models.
While price cuts for Tesla’s electric cars in the U.S., China and elsewhere suggest the strategy is helping to boost sales, investors will be interested to see how the cuts have affected the company’s bottom line. In the first quarter, the price cut really affected Tesla’s net income, with the company reporting a 24% drop in net income compared to the same period a year earlier.
Tesla plans to release its second-quarter earnings after July 19.