Tesla achieves a record 466,140 Q2 vehicle deliveries, aided by price cuts, as the EV manufacturer outperforms expectations

Tesla outperformed analyst estimates in the second quarter, delivering 4,66,140 vehicles amid a challenging market, according to the company's earnings report issued on Sunday. The nearly half-million deliveries indicate an increase of 83% over the same period last year and a 10% increase over the preceding quarter.

Analysts predicted that deliveries would be less than 450,000. From April to June, the Texas-based electric vehicle manufacturer manufactured 4,79,700 vehicles, representing an 85 percent increase over the second quarter of 2022.

This takes Tesla's overall output by the middle of this year to 9,20,508, well on its approach to meeting its target of manufacturing 1.8 million vehicles by 2023 and exceeding industry projections.

"Price cuts implemented early in 2023 have paid major dividends for Musk & Co. as demand appears to remain very strong and production efficiencies have allowed for the massive deliveries," Wedbush Securities analysts stated in a client note.

As competition in the EV industry heats up, Tesla has reduced prices in the US, Europe, and Asia.

This has also helped it to withstand China's weakening demand.

"We've taken the view that pushing for higher volumes and a larger fleet is the right choice here versus a lower volume and higher margin," CEO Elon Musk said during a conference call discussing first-quarter earnings in April.

Tesla has also profited from its enhanced eligibility under the government's $7,500 (about Rs. 6,15,220) tax credit scheme for electric car owners, which is part of President Joe Biden's environmental policies.

Until recently, owners of Tesla's entry-level Model 3 were only qualified for half of the tax credit since some elements of the vehicle were not manufactured in North America.