Tesla sales rise in first quarter, following price cuts
Posted Apr 2, 2023 10:34 am.
Last Updated Apr 2, 2023 1:21 pm.
DETROIT (AP) — Tesla’s first-quarter vehicle sales rose 36 per cent after the company cut prices twice in a bid to stimulate demand.
The electric car, SUV and heavy truck maker said it delivered 422,875 vehicles worldwide from January to March, up from just over 310,000 a year ago. But the increase fell short of analyst estimates of 432,000 for the quarter, according to FactSet.
Tesla cut prices in early March on its more expensive models, the S and X, by $5,000 to as much as $10,000. In January it slashed the sticker numbers on several versions of its EVs, making some eligible for a U.S. $7,500 federal tax credit. Some versions of the top-selling Model Y small SUV saw price trims of nearly 20 per cent, and the base price of the Model 3 small car was dropped by 6 per cent.
Analysts are watching to see if the price drops cut into the company’s profit and margins per vehicle. The company says it will release first-quarter after the markets close on April 19.
Tom Krisher, The Associated Press
