Tesla Q2 delivery record shows its EV price cuts are working

Tesla surprised Wall Street in the second quarter, delivering a record 466,140 vehicles globally. Bloomberg said analysts had expected Tesla to ship just over 448,000 vehicles.

The electric vehicle (EV) maker led by Elon Musk announced the notable figures on Sunday. Second-quarter earnings will be released on July 19.

Most of the deliveries involved the Model 3 sedan and Model Y crossover, with a total of 446,915 delivered. The more expensive Model X and Model S vehicles saw a combined delivery count of 19,225.

The numbers are in stark contrast to those reported last year when the U.S. automaker delivered 254,695 vehicles.

The sales are likely to have been boosted by Tesla’s decision to reduce the prices of its vehicles earlier this year. It also introduced incentives that included three months of free fast-charging for cars delivered in the U.S. before June 30.

Tesla made and delivered more than 1.3 million vehicles globally in 2022 and is the leading EV maker in the U.S. However, in its second-largest market, China, where it has a production facility in Shanghai assembling the Model 3 and Model Y, the company sits behind local rival BYD, which has been making moves into the international market.

A few days ago, BYD launched the Dolphin EV in Australia for 38,890 Australian dollars (about $26,000), making it the country’s most affordable electric car. The Dolphin is also heading to the U.K. and New Zealand markets, where it will also sell with an attractive price tag.

With the EV market becoming more competitive, many experts predict that Tesla will continue its price-cutting strategy into 2024.

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