Tesla sales record in the second quarter

The world’s two largest EV manufacturers, Tesla of the US and BYD of China, broke new sales records in the second quarter.

Electric car maker Tesla released its second-quarter 2023 vehicle production and delivery report yesterday. Tesla, owned by Elon Musk, one of the world’s richest people, delivered 466,140 cars in the second quarter.

The numbers exceeded analysts’ expectations. Analysts polled by Bloomberg expected the company to ship 448,350 cars this quarter.

THE LOW PRICE POLICY WORKED

After Tesla ramped up production at its vehicle assembly plant in Texas, the company’s deliveries rose 10 percent quarter-over-quarter and 83 percent year-over-year. The numbers showed that Musk’s policy of increasing sales by lowering prices showed its effect.

However, the price declines also affected the company’s profitability. Tesla reported a 24 percent drop in net income compared to the same period a year ago. However, the increase in the costs of raw materials and other commodities was also effective in diminishing profitability.

The Model 3 and Y accounted for 96 percent of Tesla’s total sales this quarter, while sales of the more expensive Model X and Model S were limited.

RISE OF CHINESE COMPETITORS

While Tesla achieved record sales, its biggest rival, the Chinese BYD, continued to increase its sales volume. The Shenzhen-based company’s quarterly sales rose 98 percent from a year earlier.

While BYD sold a total of 700,000 clean energy vehicles in the second quarter, 252,200 of them were electric vehicles. The company delivered 348,000 hybrid vehicles in the second quarter.

Sales of other Chinese electric car makers also increased this quarter. While Li Auto reached the highest monthly sales figure with 32,575 deliveries, Aion stood out with 45,13 deliveries.