Tesla sales jumped in the first quarter

Tesla sales jumped in the first quarter

Tesla sales jumped in the first quarter

Tesla’s sales rose 5% in the first three months of the year after cutting prices for its electric cars and ramping up production at new factories in Texas and Germany.

Tesla on Sunday said it delivered nearly 423,000 vehicles from January to March, up from 405,000 in the final quarter of 2022, in line with Wall Street expectations.

The company delivered 310,000 vehicles in the first quarter of 2022.

Tesla, which dominates electric vehicle sales in the United States, regained some of the credibility with investors it lost during a tumultuous 2022, when Elon Musk, the automaker’s chief executive, was distracted by its acquisition of Twitter. Tesla shares are up 90% so far this year, although they are still worth about half of what they were worth in November 2021.

In the United States, Tesla has been among the main beneficiaries of changes to federal tax credits offered to buyers of electric cars. Last year, Democrats eliminated the cap on the number of vehicles from a given manufacturer eligible for the $7,500 credit. Tesla had exhausted its quota, but in January purchases of its two most popular cars regained eligibility for the $7,500 tax credit.

Tax credit rules will become stricter on April 16, requiring companies to acquire battery components and battery minerals from the United States or its allies. Tesla told buyers that its lowest-priced version of the Model 3 sedan, which uses a battery made in China, would no longer receive full credit.

But Tesla is likely ahead of rivals like Ford Motor in meeting the demands of other models.

Tesla has also been able to ramp up production at new plants near Austin, Texas, and outside Berlin, reducing the time customers wait for cars. Tesla said in March that the Berlin plant had increased production capacity to 5,000 cars per week.

Investors remain concerned about Tesla’s sales in China, where it faces intense competition from domestic rivals like BYD. And Tesla’s ability to dominate the US market will be tested this year as established automakers roll out new electric models. General Motors plans to start selling three new electric cars in 2023, including a sport utility vehicle with a base price of around $30,000 and a pickup truck starting at around $40,000 – both cheaper than the car. more affordable from Tesla, which starts at around $43,000.

Mr. Musk has promised that the company’s much-delayed Cybertruck will go on sale before the end of the year. But mass production of the futuristic pickup won’t begin until 2024. Until then, Tesla won’t have any offers in one of the most popular segments in the United States.

Tech

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