Tesla outperformed analyst forecasts in the second quarter, delivering 466,140 vehicles amid a challenging market, according to the company’s earnings report released on Sunday.
The nearly half-million deliveries indicate an increase of 83% over the same period last year and a 10% increase over the preceding quarter.
Analysts predicted that deliveries would be less than 450,000.
From April to June, the Texas-based electric vehicle manufacturer manufactured 479,700 vehicles, an 85 percent increase over the second quarter of 2022.
This takes Tesla’s total output by the middle of this year to 920,508, well on its way to meeting its target of manufacturing 1.8 million cars by 2023 and exceeding industry projections.
“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.
Tesla has also profited from its enhanced eligibility in the government’s $7,500 tax credit scheme for electric car owners, which is part of President Joe Biden’s environmental policies.
Until recently, customers of Tesla’s entry-level Model 3 were only entitled for half of the tax credit.
