Electric vehicle giant Tesla surpassed market expectations by delivering a record-breaking 466,140 units in the second quarter of the year, reflecting a 10% increase from the previous quarter and an impressive 83% year-on-year surge.
Remarkably, the surge in deliveries can be attributed to the automaker’s strategic price cuts and eligibility for US federal credits, making Tesla’s electric cars more affordable.
Below are the Q2 2023 key figures from Tesla:
- Total deliveries Q2 2023: 466,140
- Total production Q2 2023: 479,700
Tesla’s “smart poker move”
Tesla’s strategic approach of implementing price cuts and leveraging US federal credits has successfully made its EVs more accessible to American consumers.
These initiatives arguably played a pivotal role in the company’s ability to exceed market expectations and achieve strong sales figures in the highly competitive global EV market.
For context, nine analysts polled by Refinitiv projected an average delivery estimate of 445,000 vehicles for Tesla in Q2, with the lowest at 439,875 and the highest at 450,000. Remarkably, the company’s actual deliveries outperformed expectations, with its 466,140 unit record.
Of that total, the Tesla Model 3 compact cars and Model Y sport-utility vehicles accounted for most of the brand’s deliveries in Q2 2023, reaching 446,915 unit sales. Meanwhile, the Model S and Model X contributed 19,225 units. Refer to the table below:
| Models | Production | Deliveries | Subject to operating lease accounting |
| Model S/X | 19,489 | 19,225 | 8% |
| Model 3/Y | 460,211 | 446,915 | 5% |
| Total | 479,700 | 466,140 | 5% |
However, it must be noted that the Musk-led automaker built 13,560 more EVs than it actually delivered in Q2 2023. Nonetheless, the gap dropped substantially from 17,933 units in the first quarter.
Wedbush Securities analyst Dan Ives even stated that Tesla’s price cuts were a “smart poker move” that paid off significantly, particularly in the competitive Chinese market. The analyst expects Tesla to continue thriving in the world’s largest auto market, despite the strong competition from market leader BYD.
“We believe margins will trough the next few quarters.”
Dan Ives, Wedbush Securities analyst
Tesla’s bold approach to prioritizing sales growth over immediate profitability in a challenging economic climate and amid rising competition has proven successful. By introducing price cuts and expanding discounts across its product line-up, the company has stimulated demand, effectively managed its inventory, and enabled its EVs hit the necessary price cap to be eligible for the US federal tax credits of up to $7,500.
Tesla’s dominance in the fast-charging industry
Tesla’s accomplishments extend beyond vehicle deliveries, with the company securing partnerships with major automakers and charging equipment manufacturers.
Ford Motor, General Motors, Rivian, Volvo, Polestar, and fast-charging equipment makers have agreed to adopt Tesla’s North American Charging Standard (NACS), solidifying the company’s position as a pioneer in the EV fast-charging space.
See Also:
- Tesla price cuts result in ‘significant cancellations’ for China EV brands
- YD overcame challenges brought by Tesla’s price cuts, reports an 11-fold rise in Q4 2022 profit
- Tesla Model 3 price drops to $23k in California thanks to tax credits
- Tesla Model 3 now qualifies for the $7,500 EV tax credit
- Tesla battery suppliers enjoy shares growth amidst IRA tax credits
Despite the ongoing challenges of a competitive automotive industry and evolving consumer preferences, Tesla’s innovative strategies have proved pivotal in driving exceptional sales and positioning the company as a market leader.
