Tesla beats second-quarter delivery estimates as price cuts pay off
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Tesla Inc. on Sunday said it delivered a record number of vehicles in the second quarter, topping market estimates as price cuts and U.S. federal credits helped make its electric vehicles more affordable.
Tesla Inc. on Sunday said it delivered a record number of vehicles in the second quarter, topping market estimates as price cuts and U.S. federal credits helped make its electric vehicles more affordable.
The Elon Musk-led company handed 466,140 vehicles in the April to June period, up 10% from the preceding quarter, and 83% higher from a year earlier.
Analysts on average had expected Tesla to deliver 445,000 cars, according to nine analysts polled by Refinitiv, with the lowest estimate at 439,875 and highest at 450,000.
The world's most valuable automaker produced 13,560 more vehicles than it delivered in the second quarter, although the gap has narrowed from 17,933 the first quarter.
"The price cuts was a smart poker move for Tesla and paying major dividends in the field especially for the China market," Dan Ives, an analyst at Wedbush Securities, said.
Tesla is expected to hit record sales in China, its second-largest market after North America, despite stiff competition from market leader BYD.
"We believe margins will trough the next few quarters," Ives added.
