Tesla’s recent report on vehicle production and deliveries for Q2 2023 exceeded expectations and showcased remarkable results. The company experienced an impressive 83% year-over-year surge in deliveries, attributed to expanded manufacturing capacity and improved production at their vehicle assembly plant in Austin, Texas, led by Elon Musk.
During this period, Tesla reported a total of 466,140 deliveries and 479,700 units produced, marking the fifth consecutive quarter where production surpassed deliveries. While specific numbers for models and regions were not disclosed, these delivery figures serve as a reliable indicator of sales, closely watched by shareholders.
Analysts had estimated around 445,924 vehicle deliveries for the period ending June 30, 2023. However, the actual figures surpassed these projections. Tesla strategically offered discounts and incentives on certain models, such as the Model 3, Model X, and Model S, to stimulate sales in the U.S. market. Despite constituting a small portion of Tesla’s overall sales, these efforts proved effective.
In the U.S., the Model 3 and Model Y became eligible for a $7,500 tax credit under the Inflation Reduction Act, contributing to their popularity. The Model Y crossover and the Model 3 entry-level sedan accounted for approximately 96% of Tesla’s deliveries during the quarter.
While concerns of a potential “price war” in the electric vehicle market arose after Tesla’s discounts in Q1, prices for Tesla vehicles remained stable overall during Q2. However, Piper Sandler senior research analyst Alexander E. Potter cautioned that potential price cuts in the third quarter might raise investor concerns about margins.
Tesla operates vehicle assembly plants in Fremont, California; Austin, Texas; Shanghai, China; and Brandenburg, Germany. Additionally, their battery plant in Sparks, Nevada, manufactures the electric heavy-duty truck, the Semi. Although Semi deliveries began in December 2022, Tesla has yet to achieve high-volume production of these trucks.
