Tesla has surpassed expectations for deliveries in the second quarter of 2023, thanks to price cuts and federal tax credits for electric vehicles.
The electric vehicle company, owned by Elon Musk, reported a record global production of 479,000 units and a record delivery of 466,140 units. This is a 10% increase from the previous quarter’s delivery of 422,875 Tesla electric vehicles, and an 83% increase compared to the same period last year. Delivery numbers are more indicative of actual sales numbers, which Tesla does not disclose.
Tesla delivered a larger number of Model 3 and Y vehicles compared to the more expensive Model S and X vehicles. Specifically, 460,211 Model 3 and Y units were delivered, along with 19,489 Model S and X units. Additionally, 5% of sales were subject to lease accounting.
About half of these deliveries likely came from Tesla’s Shanghai gigafactory, according to data from the China Passenger Car Association. In April, Tesla delivered 75,842 China-made EVs, and in May, the number increased to 77,695. Approximately 82,610 vehicles were delivered to mainland China in April and May.
In the United States, Tesla’s Model 3 vehicles now qualify for the full $7,500 EV tax credit, joining the company’s other models.
While Tesla’s price cuts have contributed to increased sales, investors are interested in how these cuts have affected profit margins. In the first quarter, the price decreases resulted in a 24% drop in net income compared to the previous year.
The second quarter earnings report will provide more insight. Tesla plans to release its earnings after the bell on July 19.