Elon Musk: Tesla produces a record number of vehicles following price decreases.

Tesla says it delivered a record number of vehicles in the three months ending in June, after lowering prices to boost sales.

To compete with competing manufacturers, it has reduced pricing in markets such as the United States, the United Kingdom, and China.

This weekend, major Chinese automakers announced a spike in June sales.

Elon Musk, CEO of Tesla, stated earlier this year that chasing bigger sales with lower profits was the “right choice” for the company.

Tesla announced on Sunday that it delivered 466,140 vehicles in the second quarter, an increase of more than 80% from the previous year.

During the same time span, the business said it raised car output to nearly 480,000.

“Tesla has made a strategic choice to be a volume manufacturer,” Bill Russo, founder and CEO of advisory firm Automobility, told the BBC.

“This was the main contributor to the sales increase, as the price war benefited primarily the higher-volume Model 3 and Model Y,” he noted.

According to Dan Ives of investment company Wedbush Securities, “the price cuts in China have been a smart poker move that has been massively successful for Tesla.”

After North America, China is Tesla’s second largest market.

In the world’s second largest economy, where it confronts competition from local electric car makers, the company has been slashing pricing.

Over the weekend, Beijing-based Li-Auto said that its June deliveries reached an all-time high of 32,575 units, marking the company’s third straight monthly sales record.

Meanwhile, Nio of Shanghai and Xpeng of Guangzhou increased their monthly deliveries to 10,707 and 8,620, respectively.

Musk has promised to bring Tesla to India after meeting with Modi.
Tesla CEO Elon Musk is making his first trip to China in three years.
Tesla has also faced growing competition in other parts of the world, as well as the impact of higher borrowing costs on customers.

This year, it has responded by lowering prices.

Tesla stated in April that it had no plans to stabilize its vehicle costs, despite the fact that continuous price drops had reduced profitability.

“We’re not’starting a price war,’ we’re just lowering prices to enable affordability at scale,” Mr Musk remarked on Twitter.

Tesla stated at the time that its overall revenue had climbed by about a quarter year on year in the first quarter due to higher car sales.

However, its profit for the same period fell by 24% due to price reduction and rising raw material and other commodity expenses.

On July 19, the corporation will release its financial results for the second quarter.

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