Elon Musk: Tesla delivers record 466,140 vehicles number of cars after price cuts

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Elon Musk: Tesla delivers record 466,140 vehicles number of cars after price cuts

Tesla said it Elon Musk delivered 466,140 vehicles in the second quarter, which was more than 80% higher than a year earlier.

Electric carmaker Tesla says it delivered a record number of vehicles in the three months to the end of June, after cutting prices to boost sales.

  • Elon Musk’s Tesla just reported 2022 year-end vehicle production and delivery numbers.
  • In the fourth quarter, Tesla reported deliveries of 405,278 vehicles and production of 439,701 vehicles. That brings Tesla’s 2022 full year deliveries to around 1.31 million vehicles.
  • In 2021, Tesla reported 308,600 vehicle deliveries in the fourth quarter, and full-year deliveries of around 936,172 vehicles.

It has lowered prices in markets including the US, UK and China to compete with rival manufacturers.

This weekend, major Chinese car makers also reported a surge in sales in June.

Earlier this year, Tesla boss Elon Musk said he believed pursuing higher sales, with lower profits, was the “right choice” for the company.

On Sunday, Tesla said it delivered 466,140 vehicles in the second quarter, which was more than 80% higher than a year earlier.

Meanwhile, the company said it had increased vehicle production to nearly 480,000 in the same period.

“Tesla has made a strategic choice to be a volume manufacturer,” Elon Musk Bill Russo, the founder and chief executive of advisory firm Automobility, told the BBC.

“This was the main contributor to the sales increase, as its Elon Musk mainly higher-volume Model 3 and Model Y benefitted from the price war,” he added.

Dan Ives from investment firm Wedbush Securities told the BBC that “the price cuts in China have been a smart poker move that was massively successful for Tesla”.

China is Tesla’s second largest market after North America.

The firm been cutting prices in the world’s second largest economy, where it faces competition from local electric car makers.

Over the weekend, Beijing based Li-Auto said its deliveries had hit an all-time high of 32,575 in June, marking its third consecutive monthly sales record.

Meanwhile, deliveries by Shanghai-based Nio and Guangzhou-based Xpeng jumped to 10,707 and 8,620 respectively during the month.

Tesla has also been grappling with increased competition in other parts of the world, and the impact of higher borrowing costs for customers.

It has responded by cutting prices this year.

In April, Tesla said it had no plans to stabilise the prices of its vehicles, even though repeated price cuts had dented profits.

“We’re not ‘starting a price war’, we’re just lowering prices to enable affordability at scale,” Mr Musk wrote on his social media platform, Twitter.

At the time Tesla said that its overall revenue had risen by almost a quarter in the first quarter from a year ago, as car sales increased.

However, its profit for the same period dropped by 24%, because of price cuts and higher costs of raw materials and other commodities.

The company is due to report its financial results for the second quarter on 19 July.

The results, posted Sunday, demonstrated that Chief Executive Officer Elon Musk’s vow to chase volume by cutting prices have had their intended effect. Analysts surveyed by Bloomberg had expected Tesla to ship 448,350 cars in the quarter.

“It’s a big beat,” said Ben Kallo of Robert W. Baird in a phone interview Sunday morning. “People were still bracing for another round of price cuts, and this big delivery number makes that less of a risk.”

The deliveries are the most ever in a quarter for Austin-based Tesla, and a 83% increase from a year ago. The company also managed to trim the gap between production and deliveries — a figure closely watched by analysts — to 13,560 units in the second quarter. In the first quarter, it produced nearly 18,000 more cars than it delivered to customers. 

“Everyone was worried about inventory build, and it looks like they’ve normalized,” said Kallo. “The delta between production and deliveries is shrinking, which is what Tesla said they would do.”

Tesla, which sells its cars directly to consumers, has a lot of levers to move vehicles. Besides cutting prices across the lineup earlier this year, the company introduced perks, such as three months of free fast-charging in the US for cars delivered before June 30, to entice buyers. Analysts have predicted price cuts will continue into next year.

Tesla doesn’t break out its quarterly delivery numbers by individual vehicle type or region. The Models 3 and Y accounted for 96% of sales. Tesla also makes the Model S and X. 

Tesla is easily still the largest EV maker in the US, but it’s facing Elon Musk fresh competition around the world. It’s most recent vehicle — the Model Y — debuted in 2020. 

n China — its No. 2 market — the company has fallen well behind BYD Co., which has a much fresher lineup and increasingly global ambitions. Tesla announced last week that it was cutting prices of its premium car models in China by more than 4.5%, following a decision to hand out cash Elon Musk subsidies to some buyers of its Model 3 vehicles last month.

Tesla will report 2Q earnings on July 19.Tesla delivered 422,875 of its electric cars to customers in the first quarter of 2023, including 412,180 Model 3 and Y vehicles and 10,695 Model S and Xs, the company has announced. That’s a 36 percent year-over-year increase versus the first quarter of 2022, a 4 percent increase from last quarter, and a record for the company, according to Electrek

The announcement doesn’t give much of an indication for the increase; for that we’ll likely have to wait for Tesla’s full financial results on April 19th. But news of the delivery numbers follow a series of price cuts across the USEurope, and China impacting various models across Tesla’s range. In January, for example, Tesla reduced the price of the long range Model Y variant by 20 percent in the US.

On the supply side, however, Tesla has been ramping up production. Figures from the China Passenger Car Association cited by TechCrunch suggest that around half of Tesla’s Q1 cars may have been produced in its Shanghai factory, which opened in 2019. The company officially opened new factories near Berlin and in Texas in March and April last year, respectively, where production is also ramping up. There are also plans to build a new factory in Monterrey, Mexico, Tesla confirmed last month

Elon Musk: Tesla delivers record 466,140 vehicles number of cars after price cuts
The logo marks the showroom and service center for the US automotive and energy company Tesla in Amsterdam on October 23, 2019. (Photo by JOHN THYS / AFP) (Photo by JOHN THYS/AFP via Getty Images)

Tesla CEO Elon Musk said in January that the company’s target is to deliver 2 million vehicles in 2023, up from 1.3 million in 2022. But that 1.3 million figure actually represents a missed target for Tesla, which had hoped to increase its deliveries last year by 50 percent to 1.4 million. Analysts had been hoping for closer to 1.8 million deliveries.

These figures cover Tesla’s consumer cars, and there weren’t any production and delivery numbers for the Tesla Semi truck, which it started delivering last December. Initial manufacturing of Tesla’s long-awaited Cybertruck could start this summer, with mass production ramping up next year, and there’s also supposed to be a new Roadster shipping at some point too.

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The Tesla chief executive’s unconventional justification for why shareholders should stomach lower profits came as the US electric-car maker reported that price cuts this year had driven its profits margins in the first quarter below already-reduced forecasts.

Musk’s comments on an earnings call on Wednesday pushed Tesla shares lower in after-market trading, adding another 6 per cent to the 10 per cent decline they Elon Musk had suffered since the start of the month on worries about falling demand.

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A series of price cuts since the start of this year pushed Tesla’s gross profit margin down to 19.3 per cent in the first quarter, lower than the company had indicated when it began slashing prices, and 10 percentage points below the record margin it reported a year before. “This is a good time to increase our lead further, and we’ll continue to invest in growth as fast as possible,” Musk said of the price cuts.

He added that Tesla had a “unique strategic advantage” in being able to make money from cars on the road onceElon Musk they become fully autonomous. “We’re the only ones making cars that technically could sell for zero profits now and yield tremendous profits in future through autonomy,” he said.

The company has missed repeated targets Musk has set for full autonomy and has given only the broadest outline of how it could earn fees from letting Tesla owners rent out their personal cars as driverless taxis.

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The shift in Tesla’s focus to market share rather than profits led to a 21 per cent drop in adjusted earnings per share in the first quarter, even as revenue jumped 24 per cent from a year before. On most measures, such as its cash flow margins and operating profit margin, Tesla’s profitability fell to its lowest level in two years, while its gross margin was back at levels seen three years ago.

Despite the sliding profits, Tesla still met reduced Wall Street earnings expectations, with adjusted earnings per share of 85 cents on revenue of $23.3bn. Based on formal accounting principles, earnings fell to 73 cents from 95 cents a year before. Tesla has announced price cuts of up to 20 per cent on some versions of the Model 3 and Model Y, its biggest-selling vehicles. However, the number of vehicles it delivered in the quarter rose only 4 per cent from the final Elon Musk quarter of 2022.

Elon Musk: Tesla delivers record 466,140 vehicles number of cars after price cuts

Tesla, Inc. is an American electric vehicle and clean energy company founded by Elon Musk, JB Straubel, Martin Eberhard, Marc Tarpenning, and Ian Wright in 2003. The company is headquartered in Palo Alto, California.

Tesla is known for its production of electric vehicles (EVs), energy storage products, and renewable energy generation systems. Their mission is to accelerate the world’s transition to sustainable energy.

Tesla’s electric vehicles include the Model S, a luxury all-electric sedan; Elon Musk the Model 3, a more affordable compact sedan; the Model X, a luxury SUV; and the Model Y, a compact SUV. They also introduced the Cybertruck, an all-electric pickup truck with a futuristic design. Additionally, Tesla has plans to release the Tesla Semi, an electric semi-truck, and the next-generation Roadster sports car.

Tesla vehicles are known for their advanced technology, long-range capabilities, and innovative features such as Autopilot, which is an advanced driver-assistance system. Tesla also has a widespread Supercharger network that provides high-speed charging for their vehicles, allowing for long-distance travel with Elon Musk minimal charging stops.

In addition to electric vehicles, Tesla is involved in the production and installation of solar energy systems through its acquisition of SolarCity. They offer solar panels, solar roofs, and energy storage products like the Powerwall and Powerpack, which enable homes and businesses to store energy for later use.

Tesla’s impact on the automotive industry and the renewable energy sector has been significant, inspiring other automakers to develop their own electric vehicles. The company has garnered a strong following and has become one of the most valuable automakers in the world.

  1. Gigafactories: Tesla has established large-scale manufacturing Elon Musk facilities called Gigafactories to produce batteries, electric vehicles, and energy storage products. The first Gigafactory was built in Nevada, United States, followed by Gigafactories in Shanghai, China, and Berlin, Germany. These facilities are aimed at increasing production capacity and reducing costs to make electric vehicles more accessible to a wider market.
  2. Autonomy and Full Self-Driving: Tesla has been at the forefront of developing autonomous driving technology. They have been working on their Autopilot system, which offers advanced driver-assistance features such as adaptive cruise control, lane centering, and automatic lane changes. Elon Musk Tesla also offers a Full Self-Driving (FSD) package, which aims to achieve fully autonomous driving capabilities in the future, pending regulatory approval.
  3. Energy Storage Solutions: Tesla’s energy storage products, including the Powerwall and Powerpack, are designed to store electricity generated from renewable sources like solar and wind. These products enable homeowners, businesses, and even utility companies to store excess energy and Elon Musk use it during peak demand or when the renewable energy sources are not producing electricity.
  4. Energy Grid Solutions: Tesla’s energy products extend beyond individual homes and businesses. The company has developed large-scale energy storage solutions like the Megapack, which are intended to be used in utility-scale projects to stabilize the electrical grid, manage peak loads, and provide backup power.
  5. Supercharger Network Expansion: Tesla continues to expand its Supercharger network, which consists of high-speed charging stations for Tesla vehicles. These stations are strategically placed along popular travel routes and enable long-distance travel with convenient and fast charging capabilities. Elon Musk Tesla has been investing in expanding the network globally to support the growing number of Tesla owners.
  6. Battery Technology Advancements: Tesla has been working on advancements in battery technology to improve the range, performance, and longevity of its electric vehicles. They have been developing new battery chemistries, such as the “4680” cells, which offer higher energy density Elon Musk and improved efficiency. These advancements have the potential to lower the cost of electric vehicles and accelerate their adoption.
  7. Impact on the Stock Market: Tesla’s success has also had a significant impact on the financial markets. The company’s stock has experienced significant growth, making Tesla one of the most valuable companies in terms of market capitalization. Its stock price fluctuations have attracted attention from investors and analysts alike, with Tesla being viewed as a key player in the transition to electric mobility.
  8. Electric carmaker Tesla says it delivered a record number of vehicles in the three months to the end of June, after cutting prices to boost sales.
  9. It has lowered prices in markets including the US, UK and China to compete with rival manufacturers.
  10. This weekend, major Chinese car makers alsoElon Musk reported a surge in sales in June.
  11. Earlier this year, Tesla boss Elon Musk said he believed pursuing Elon Musk higher sales, with lower profits, was the “right choice” for the company.
  12. On Sunday, Tesla said it delivered 466,140 vehicles in the second quarter, which Elon Musk was more than 80% higher than a year earlier.
  13. Meanwhile, the company said Elon Musk had increased vehicle production to nearly 480,000 in the same period.
  14. “Tesla has made a strategic choice to be a volume manufacturer,” Bill Russo, the founder and chief executive of advisory firm Automobility, told the BBC.
  15. “This was the main contributor to the sales increase, as its mainly higher-volume Model 3 and Model Y benefitted from the price war,” he added.
  16. Dan Ives from Elon Musk investment firm Wedbush Securities told the BBC that “the price cuts in China have been a smart poker move that was massively successful for Tesla”.
  17. China is Tesla’s second largest Elon Musk market after North America.
  18. The firm been cutting prices in the world’s second largest economy, where it faces competition from local electric car makers.
  19. Over the weekend, Beijing based Li-Auto said its deliveries had hit an all-time high of 32,575 in June, marking its third consecutive monthly sales record.
  20. Meanwhile, deliveries by Shanghai-based Nio and Guangzhou-based Xpeng jumped to 10,707 and 8,620 respectively during the month.
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