EV maker Tesla beats second-quarter delivery estimates as price cuts pay off

Billionaire Elon Musk-owned Tesla Inc saw bumper sales of electric vehicles in the second quarter of 2023, a Reuters report said on Sunday.

EV maker said it sold 466,140 vehicles in the April to June period. This was 10 percent higher from the first quarter and a whopping 83 percent higher than last year.

Price cuts and US federal credits reportedly helped the EV maker to post better-than-anticipated sales in the second quarter.

Tesla's total sales also beat analyst estimates by a narrow margin. According to a Reuters poll of analysts, Tesla was expected to sell around 445,000 EVs in the second quarter of 2023.

Tesla, the world's most valuable automaker, produced 13,560 more electric vehicles than it delivered in the April-June quarter. Moreover, the gap between production and total sale has narrowed from 17,933 in the first quarter.

In what will be music to the ears of Musk, Tesla is likely to post record sales in China, its second-largest market after the United States. This is despite some tough competition from China's market leader BYD.

A major reason for the boost in China sales could be attributed to the price cut since last year, which was a part of Musk's plan to prioritise sales over profits.

"The price cuts was a smart poker move for Tesla and paying major dividends in the field, especially for the China market," Dan Ives, an analyst at Wedbush Securities, was quoted by Reuters as saying.

The world's most-valuable carmaker also increased discounts across all of its car models, while making all of its Model 3s eligible for full US federal credits of $7,500.

The US Department of Treasuryhad announced tax credits on electric vehicles in order to incentivise the automobile industry to develop the EVinfrastructure in the United States.

Meanwhile, the electric vehicle pioneer is quickly making a mark in the fast-charging space. Iconic automobile companies like Ford Motor and General Motors, as well as several chargermakers have announced that they will be adopting the carmaker's North American Charging Standard (NACS).

(With inputs from agencies)