Tesla sells record EVs with federal tax credits and price cuts

Tesla beat Wall Street delivery estimates in the second quarter of 2023 due to price cuts and the Biden administration’s federal electric vehicle tax credits.

The Elon Musk-owned EV maker produced 479,000 units and delivered 466,140. That’s up 10% from the first quarter’s 422,875 Tesla EVs and 83% year-over-year. Delivery numbers, which Tesla doesn’t release, are more indicative of sales.

Model 3 and Y deliveries outnumbered Model S and X deliveries. Tesla delivered 460,211 Model 3 and Y units and 19,489 Model S/X units. The automaker reported 5% lease accounting.

The China Passenger Car Association estimates that Tesla’s Shanghai gigafactory supplied half of those deliveries. Tesla sold 75,842 China-made EVs in April and 77,695 in May. The CPCA has not released June sales figures. In April and May, mainland China received 82,610 vehicles.

Tesla’s Model 3 joined its other models in qualifying for the full $7,500 EV tax credit in the second quarter.

Tesla’s price cuts in the U.S., China, and other countries are boosting sales, but investors want to know how they’ve affected margins. Tesla’s first-quarter net income fell 24% due to price decreases.

Earnings will tell. Tesla will report second-quarter earnings after the bell on July 19.