Tesla’s sales rose 10 percent better than expected in the second quarter as the Elon Musk-led company benefited from government incentives and price cuts that made its electric cars less expensive than electric models. comparable gasoline.
Tesla delivered 466,000 vehicles from April to June, up from 423,000 vehicles in the previous quarter, the company said Sunday. Compared to a year earlier, sales in the second quarter increased 83 percent as the company expanded production at new factories in Austin, Texas, and near Berlin.
The sales figures beat estimates by Wall Street analysts and showed that Tesla was able to overcome the effect of higher interest rates, which drive up the monthly payments of people who buy cars on credit.
Tesla was the first of the automakers to report its sales figures. Sales of most major auto brands likely rose sharply in the past quarter, analysts say. Supply chain issues have improved, making it easier for automakers to get the parts they need and for buyers to find the cars they want. Cox Automotive analysts forecast that US new vehicle sales will increase more than 8 percent this year from 2022.
Rules that went into effect this year allowed Tesla vehicle buyers to qualify for $7,500 in federal tax credits. On the credit, the least expensive Model 3 sedan sells for less than $33,000, cheaper than similar luxury sedans sold by Mercedes-Benz and BMW that run on gasoline and in line with mass-market cars like the Toyota Camry and the honda accord.
Electric car owners also benefit from fuel savings and lower maintenance costs. Electric vehicles do not require oil changes, and electricity is generally cheaper per mile than gasoline.
Tesla is the dominant maker of electric cars in the United States, with a 62 percent market share in the first quarter, according to Kelley Blue Book. But their share has fallen from more than 70 percent in early 2022, as established automakers like General Motors, Ford Motor, and Volkswagen began offering more electric models.
In China, a car market larger than the United States or Europe, Tesla faces intense competition from local automakers with newer model lines, such as BYD. On average, electric vehicles from Chinese manufacturers have been in showrooms for a little over a year, according to AlixPartners, a consulting firm. Tesla’s most popular car, the Model Y sport utility vehicle, went on sale in 2020.
Chinese manufacturers also offer interior and exterior styling and information and entertainment systems that better suit local tastes, AlixPartners said, citing consumer surveys.
While Tesla’s sales continued to rise, the company’s profitability suffered as it had to cut prices to boost demand. Tesla earned $2.5 billion in the first quarter, up from $3.7 billion in the last three months of 2022.
Many investors are betting that Tesla’s growth will accelerate as demand for electric vehicles grows, and the company will start selling the Cybertruck, an electric pickup truck, later this year. Tesla’s agreement to let other automakers, including Ford and GM, use its charging network could also become a new source of revenue.
Tesla’s stock price has more than doubled this year, though it remains well below its 2021 peak, when the company was worth more than $1 trillion.
The automaker said on Sunday that it would publish its financial results for the second quarter of this year on July 19.