Elon Musk-led car manufacturer Tesla has set a record by delivering 466,000 cars in the second quarter. By lowering prices, they have seen a significant increase in sales of their most popular electric cars.
In the April to June period, they delivered 10% more vehicles than the previous quarter and a whopping 83% more than the same period last year. Analysts had predicted that they would sell around 455,000 cars, but Tesla shattered those forecasts.
– The price cuts was a smart poker move for Tesla and paying major dividends in the field especially for the China market, said Dan Ives, an analyst at Wedbush Securities.
The company aims to increase sales volumes by an average of 50% per year.
– There are lots of people who want to buy a Tesla, but can’t afford it. These price changes really make a difference to the average consumer, Musk said earlier this year.
During the quarter, Tesla delivered 446,915 Model 3 and Model Y cars – their mass market models. They also delivered 19,225 of their more luxurious Model S and Model X. Deliveries of the company’s much talked about Cybertruck will also begin this quarter.
Price cuts and US tax breaks have made Tesla’s electric cars more affordable. All their Model 3 cars in the US are now eligible for full federal tax credits of $7500.
And it’s not just car sales that are doing well for Tesla. Several companies, including Ford and General Motors, as well as fast-charging equipment manufacturers, have chosen to adopt Tesla’s North American charging standard, giving the company a boost.
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