The price cuts at Tesla, amongst other factors, ensured that the EV giant exceeded Wall Street estimates of its deliveries in the second quarter of 2023. In a press release, the automaker posted its vehicle production and delivery report for the second quarter, where it reported record numbers of production and deliveries.
According to its report, Tesla produced a total of 479,000 units of its EVs, while its deliveries rose to 466,140 for the same period. The deliveries mark an increase of 10% from the vehicles it delivered in the first quarter of the year – 422,875 units – and an astonishing growth of 83% from the corresponding quarter in the previous year. Looking at the corresponding quarter in the previous year, we find that Tesla clocked a total of 254,695 deliveries, while it produced 258,580 vehicles during the same period. Tesla’s vehicle assembly plants are currently operational in Fremont, California, Austin, Texas, and in Shanghai and Brandenburg, Germany. It has also lowered prices in several markets, including the US, UK and China.
Wall Street’s estimates for Tesla’s deliveries for the period ended June 30, 2023 amounted to 445,924. The company’s market cap (as of Friday) amounted to $820 billion, further cementing its position as one of the leaders in its sector and being far ahead of its fellow automakers. Still, it is below its all-time record of above the $1 trillion mark. Reuters reports that the company was set to increase the same to $900 billion, based on early trading in its shares.
Speaking more of Tesla’s delivery and production reports, the company produced a total of 19,489 Model S and Model X vehicles, while it delivered 19,225 units of the same vehicles. At the same time, it produced a total of 460,211 Model 3 and Model Y vehicles, and delivered a total of 446,915 units of the two vehicles. About half of these deliveries are likely to have come from Tesla’s Shanghai gigafactory, according to data from the China Passenger Car Association (CPCA). The Model 3 and Y are now eligible for a $7,500 tax credit in the US under the Inflation Reduction Act.
“A vast number of people want to buy a Tesla car but can’t afford it, and these price changes really make a difference for the average consumer,” Musk had said in January. For now, Tesla also announced that it will be posting its financial results for the second quarter of the year after market close on Wednesday, July 19, as well as issue a brief advisory containing a link to the Q2 2023 update. The same will be made available on Tesla’s Investor Relations website, the company noted.
The reasons for this spectacular growth in deliveries can be attributed to several reasons – increased production at its vehicle assembly plant in Austin, Texas being one of them. Nonetheless, it marks the fifth period in a row when Tesla reported a higher level of vehicles produced compared with deliveries, and comes after it had exceeded estimates in Q1 as well.
The strong performance of Tesla’s production and delivery report can be seen in the growth of its shares – the same rose by 7.69% on Monday after the automaker reported its better-than-expected quarterly deliveries. The shares of the EV giant are currently priced at $281.90 per share. This spectacular growth already marks an increase of more than double in value this year.