Tesla price cuts pay off
Tesla beats Q2 delivery estimates as a bet on cutting prices paid off. IGTV’s @Angeline Ong takes a look at how this is part of Elon Musk’s plan to keep ahead of the competition.
(Video Transcript)
Tesla
Tesla reported on Sunday that a record number of vehicles were delivered in Q2. Tesla delivers around 466,000 vehicles in the April–June period. That was up 10% on the previous quarter and 83% higher than a year earlier. This beats the expectations of all nine analysts polled by Refinitiv. Production remained above delivery, although the gap narrowed compared to Q1.
And since the start of 2023, Tesla has taken the risk of cutting its prices to make its cars more competitive, especially in the Chinese market, its second-biggest market after North America. Let's have a look at the Tesla chart for you because, of course, Tesla has just turned 20. Where was that time? Tesla has been promising investors that they will prioritise sales growth ahead of profit, and there is no doubt that margins will be affected. But it is all part of the plan that Elon Musk has flagged.
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