Tesla nearly doubles deliveries compared to last year

NEW YORK — US automaker Tesla beat analyst expectations in the second quarter, delivering 466,140 vehicles despite a difficult market, according to its earnings report released Sunday.

The nearly half million deliveries represent an 83 per cent increase over the same period last year, and a 10 per cent rise from the previous quarter.

Analysts had expected deliveries to come in under 450,000.

From April to June, the Texas-based electric vehicle giant produced 479,700 cars — an 85 per cent increase compared to the second quarter in 2022.

That brings Tesla's total production by the middle of this year to 920,508, well on its way to its goal of manufacturing 1.8 million cars in 2023 and exceeding expectations from industry watchers.

"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," analysts from Wedbush Securities wrote in a note to clients.

As competition in the EV sector heats up, Tesla has made several price cuts in the United States, Europe and Asia. 

This has also allowed it to weather declining demand in China.

"We've taken a 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 on an April call discussing first-quarter results.

In the United States, Tesla has also benefited from its expanded eligibility in the government's $7,500 tax credit program for electric car buyers, part of President Joe Biden's environmental policy.

Until recently, buyers of Tesla's cheapest offering, the Model 3, were only eligible for half the tax credit because certain parts of the car weren't produced in North America.