Tesla delivers record number of vehicles in second quarter after price cuts

Electric vehicle manufacturer Tesla has delivered a record number of cars in the second quarter of 2023, beating analysts' estimates, after cutting the prices of its vehicles in a bid to boost sales.

The Elon Musk-owned company delivered 466,140 vehicles in the period of April to June, up 83 per cent compared with the same period a year earlier, the company announced on Sunday.

Tesla was able to outperform analysts' estimates of total deliveries during the period. Analysts surveyed by Bloomberg had expected Tesla to ship 448,350 cars in the quarter.

The company produced 479,700 vehicles during the period, including 19,489 model S/X cars and 460,211 model 3/Y cars. In the same period last year, it produced 258,580 vehicles.

The company's share price is up by 142 per cent since the start of 2023.

Tesla is the largest EV maker in the US but faces fresh competition around the world.

In China — its second biggest market — the company has fallen well behind BYD, which sold more than 700,000 units in the second quarter, double the amount on an annual basis.

Last week, Tesla said it was cutting prices of its premium car models in China by more than 4.5 per cent.

It has also lowered prices in other markets, including the US and UK, in an effort to gain an advantage over its competition.

“Tesla delivered a record number of cars worldwide in [the second quarter] … as Elon Musk is aggressively cutting prices to boost volume. It looks like it is paying off,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.

“The latest figures will likely keep Tesla shares on a positive path to challenge the $280 level again. But competition is not far. The Chinese BYD did better than Tesla, selling more than 700,000 cars last quarter, its best ever quarter as well.”

Tesla reported a 24 per cent drop in the first quarter net profit after it reduced the prices of several models across different regions in the January-March period, again with the aim of boosting sales.

It reported a net profit of $2.5 billion in the first quarter, down by more than 30 per cent on a quarterly basis.

The company will announce its second-quarter results after the close of the market on July 19, it said in the statement.

Tesla is also looking to invest in India soon, Mr Musk said after meeting Indian Prime Minister Narendra Modi last month.

Mr Musk said he expects the company to have a presence in India “as soon as humanly possible”, adding that he intends to visit the country next year.

Tesla is also partnering with a number of car manufacturers, including Rivian Automotive, Polestar, General Motors and Ford, to allow drivers to use its charging networks across North America.

The agreements will provide EV users access to Tesla's network of 12,000 Superchargers across the US and Canada.