Tesla, the world’s best-selling electric car brand, he said delivered a record 466,140 sedans and crossovers in the second quarter, helped by sharp price cuts. The results exceeded analysts’ expectations.

With deliveries of the new battery-powered Model Y and 3s totaling 446,915 units, total sales were up 83% from the previous year and up 10% from the first quarter of 2023, Tesla’s previous high. Production at the four Austin, Texas, auto assembly plants rose 86% from a year earlier to 479,700 vehicles.

Analysts who cover Tesla had expected deliveries of about 448,000 units. The company, led by billionaire CEO Elon Musk, does not provide details of supply or production by global region, making it difficult to determine where demand for its vehicles is highest. North America likely accounted for the largest share of shipments during the quarter, followed by China, Europe and the rest of the world, Deutsche Bank equity analyst Emmanual Rossner wrote last month.

“The price cuts made in early 2023 have paid big dividends for Musk & Co as demand appears to remain very strong and production efficiencies have allowed massive shipments to outperform this quarter,” Wedbush analyst Dan Ives said in a research note on Sunday. “Overall, we believe Tesla is still on track to hit a bogey of 1.8 million annual deliveries with this performance.

Sales have grown steadily over the past year thanks to the expansion of new plants in Berlin and Austin, which opened in early 2022. Tesla is also preparing to to build its first plant in Mexico and is considering its expansion manufacturing footprint to India.

The company has slashed the prices of its best-selling Model Y crossover and Model 3 sedan to help both qualify for $7,500 in federal tax cuts, making both products more affordable than ever.

The strong quarterly delivery figures come in the wake of a recent downgrade of Tesla shares by stock analysts who believe they have grown too fast in recent months and in light of growing competition in the EV market, particularly in China, where domestic rivals such as BYD , continue to gain. market share.

The Chinese automakers “are the first to have a chance to disrupt the way investors view Tesla’s dominance in electric cars,” Morgan Stanley analyst Adam Jonas said in a note last month when he downgraded the stock to the equivalent of a hold rating from a buy. “While we recognize that there are many factors contributing to Chinese OEMs gaining share in their home market (incentives, increased capacity from multiple players, etc.), Tesla has been losing share in China since the 2020 peak. Our message is that investors should be comfortable with Tesla sharing the EV sandbox with China in the coming quarters and years.”

Tesla said it will release financial results for the quarter on July 19, followed by a conference call with analysts and inventors.

Source Link