In an increasingly competitive electric vehicle (EV) market, price reductions and subsidies have helped Tesla distinguish itself among a field of rivals.
On Sunday, Eastern Time, Tesla announced its production and delivery data for the second quarter. Benefiting from several price cuts and the advantages of federal tax credits for electric vehicles, Tesla delivered more than 466,100 vehicles worldwide in the second quarter, representing an 83% year-on-year increase. The production for the second quarter stood at 479,700 vehicles, a year-on-year increase of 85.5%.
This marks a historic record for Tesla's quarterly production and deliveries, symbolizing a new milestone in the automaker's developmental journey.
From a category perspective, the Q2 production for Model 3/Y was 460,200 vehicles, with 446,900 vehicles delivered, accounting for 96% of global deliveries. The delivery was estimated at 437,400. In the same quarter, the Model S/X production was 19,500, with 19,200 vehicles delivered, which was estimated at 14,600.
Throughout the year, Tesla has implemented multiple price adjustments worldwide. Despite the decline in profits being a challenge, Tesla's Q2 deliveries far exceeded expectations. This reflects the continuous boost that price cuts have provided to Tesla's sales in the U.S. and wider global markets. Tesla also received another form of federal government support in the second quarter, with some models eligible for a federal tax credit of $7,500.
In the past two weeks, Wall Street analysts have been downgrading Tesla's stock ratings, following a significant increase influenced by the continuous surge in tech stocks. Many analysts attribute this rise to the wave of artificial intelligence (AI), but they caution that Tesla is not a so-called "large AI company." Analysts like Mark Delaney from Goldman Sachs and Adam Jonas from Morgan Stanley believe that Tesla's current valuation is reasonable.
Earlier this year, Tesla's Q1 financial report revealed waning market interest in its best-selling models, the Model 3 and Model Y. Elon Musk indicated his willingness to sacrifice some profitability for sustained growth, shaking the confidence of some investors.
Tesla has confirmed that it will release its Q2 financial report after the market closes on July 19, local time in the U.S. (early morning on July 20, Beijing time), and will hold a financial report conference call later that day.
As of now, Tesla's stock price is reported at $261.77, having already risen 142% so far this year.
