Electric vehicle manufacturer Tesla delivered a record number of cars in the second quarter of the year, exceeding market estimates after increasing discounts and incentives. The company, owned by Elon Musk, delivered 466,000 cars in the three months ending June 30. Nine analysts surveyed by Refinitiv had estimated Tesla would deliver an average of 445,000 cars, with a minimum estimate of 439,875 and a maximum of 450,000. Dan Ives, an analyst at Wedbush Securities, stated, "The price reductions were a smart move by Tesla and resulted in significant profits in this industry, especially in the Chinese market."
Tesla is expected to achieve record sales in China, its second-largest market after North America, despite competition from leading market player BYD. Ives added, "We believe that profit margins will decline over the next few quarters." Tesla reduced prices starting from China in late last year, which resulted in a shrink in profit margins for the first quarter. Musk intensified the price war in April when he said the company would prioritize increasing sales amid weak economic performance and rising competition. Since then, the company has increased discounts on all its models, a move seen as reducing inventory.
