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| Tesla posts record vehicle deliveries but price cuts fail to supercharge sales | Tesla posts record vehicle deliveries but price cuts fail to supercharge sales |
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| Rising competition and bleak economic outlook drag down sales despite Elon Musk’s price-cutting gamble | Rising competition and bleak economic outlook drag down sales despite Elon Musk’s price-cutting gamble |
| Tesla on Sunday posted record quarterly vehicle deliveries, but quarter-on-quarter sales growth was modest despite price cuts as rising competition and a bleak economic outlook weighed. | Tesla on Sunday posted record quarterly vehicle deliveries, but quarter-on-quarter sales growth was modest despite price cuts as rising competition and a bleak economic outlook weighed. |
| The electric carmaker delivered 422,875 vehicles for the first three months of this year, up 4% from the previous quarter. This was 36% higher than a year ago. In January, the chief executive, Elon Musk, said Tesla could achieve 2m vehicle deliveries this year, up 52% from last year. | The electric carmaker delivered 422,875 vehicles for the first three months of this year, up 4% from the previous quarter. This was 36% higher than a year ago. In January, the chief executive, Elon Musk, said Tesla could achieve 2m vehicle deliveries this year, up 52% from last year. |
| Investors have been watching Musk’s gamble that cutting prices would stimulate sales, although they worry about eroding profit margins. | Investors have been watching Musk’s gamble that cutting prices would stimulate sales, although they worry about eroding profit margins. |
| In January, Tesla slashed prices globally by as much as 20%, unleashing a price war after missing Wall Street delivery estimates for 2022. The basic Model Y that used to sell for $65,990 (£53,500) now costs $54,990. | In January, Tesla slashed prices globally by as much as 20%, unleashing a price war after missing Wall Street delivery estimates for 2022. The basic Model Y that used to sell for $65,990 (£53,500) now costs $54,990. |
| “If they wouldn’t have done the price cut, it would have been ugly. I think what it tells you is the economy is getting tough,” said Gene Munster, the managing partner at Deepwater Asset Management. | “If they wouldn’t have done the price cut, it would have been ugly. I think what it tells you is the economy is getting tough,” said Gene Munster, the managing partner at Deepwater Asset Management. |
| “They showed an acceleration, but they didn’t accelerate to the level that Elon had suggested it would.” | “They showed an acceleration, but they didn’t accelerate to the level that Elon had suggested it would.” |
| Musk, who has missed his own ambitious sales targets for Tesla in recent years, said in January that 2023 deliveries could hit 2m vehicles, without external disruption, from 1.3m in 2022. | Musk, who has missed his own ambitious sales targets for Tesla in recent years, said in January that 2023 deliveries could hit 2m vehicles, without external disruption, from 1.3m in 2022. |
| Analysts expected 430,008 vehicle deliveries, according to Refinitiv. | Analysts expected 430,008 vehicle deliveries, according to Refinitiv. |
| Tesla delivered 6% more of its mainstay Model 3/Model Y vehicles in the first three months of this year than in the previous quarter. But the number of deliveries for its higher-priced Model X/Model S vehicles slumped by 38%. | Tesla delivered 6% more of its mainstay Model 3/Model Y vehicles in the first three months of this year than in the previous quarter. But the number of deliveries for its higher-priced Model X/Model S vehicles slumped by 38%. |
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| The automaker ramped up production at new factories in Texas and Berlin, and as China production recovered from a Covid-19 lockdown hit. Tesla tweeted on Sunday that its Texas factory built 4,000 Model Y vehicles this week, while the automaker said in late February that its German plant was producing 4,000 cars a week. | The automaker ramped up production at new factories in Texas and Berlin, and as China production recovered from a Covid-19 lockdown hit. Tesla tweeted on Sunday that its Texas factory built 4,000 Model Y vehicles this week, while the automaker said in late February that its German plant was producing 4,000 cars a week. |
| Barclays analyst Dan Levy said Tesla may be pressured to lower prices further as many carmakers have matched the cuts amid persistent concerns over a weakening global economy. | Barclays analyst Dan Levy said Tesla may be pressured to lower prices further as many carmakers have matched the cuts amid persistent concerns over a weakening global economy. |