Tesla Inc. announced record-high quarterly vehicle deliveries as well as modest sales growth as a result of price reductions.
They delivered 422,875 vehicles in the first three months of 2018, a 4% rise over the previous quarter, according to a source. This was a 36% increase over the prior year.
Tesla & Musk’s Bet
CEO Elon Musk predicted in January that the business would deliver 2 million vehicles this year, a 52% increase over the previous year.
Investors are keeping an eye on Musk’s bet that lowering costs will increase sales, though they are worried about eroding margins.
In January, Tesla reduced its worldwide prices by up to 20%. The basic Model Y is now $54,990, down from $65,990.
Deepwater Asset Management managing partner Gene Munster stated on Sunday:
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.
While it’s doing well, it is important to remember that it does not live in a vacuum.
Other electric vehicle (EV) manufacturers, particularly in China, are aggressively experimenting with cheaper and more practical battery technology that would make EVs more available to people.
While they managed to reduce production costs and thus prices, its progress has been slow and prudent.
Tesla has begun deliveries of the new Model S and Model X in China, though both vehicles are slated to arrive in the second quarter, according to the company’s China website.
Tesla Models
Tesla announced today on Weibo that deliveries of the new Model S and Model X have commenced on the Chinese mainland, nine years after the first Tesla vehicle entered the nation in 2014.
Tesla did not disclose any other information on Weibo, although its China website indicates that both versions will be available in the second quarter.
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