As a result of a number of price cuts that helped drive demand, Tesla was able to create a record number of cars in the first quarter, which was above and above what was expected.
On Sunday, the electric vehicle firm owned by Elon Musk claimed having produced 440,808 cars and having delivered 422,875. As compared to the previous quarter, sales climbed by 4%.
Almost 97 percent of all deliveries were made up of Tesla’s more fuel-efficient Model 3 and Model Y sedans. Both models had large price reductions in the first few months of this year, with the Model 3 beginning at $6,400 seeing a decrease of 6.4% and the Model Y Long Range experiencing a decrease of approximately 20% in January.
Elon Musk, CEO of Tesla, indicated in January that the company has the capacity to produce 2 million automobiles, despite the fact that Tesla plans to produce around 1.8 million automobiles by the end of the year.
Why did Tesla lower its prices?
The price decreases in January enabled certain Tesla vehicles to qualify for a federal electric vehicle tax credit, which boosted demand.
“What matters is affordability,” Musk stated during Tesla’s investor day last month. “As you make the car more affordable, demand will skyrocket.”
How big of a discount did Tesla provide customers?
After the price reductions that took place in January, Tesla once again reduced the beginning costs for a number of its models in March. According to the information provided on Tesla’s official website, the price reduction ranged from 4% to 9% for the Model S and Model X vehicles.
The following is a list of the current pricing for Tesla vehicles: