Tesla Inc, the electric vehicle manufacturer, announced on Sunday that it had posted record quarterly vehicle deliveries of 422,875 for the first three months of this year, which is a 36% increase from a year ago. The deliveries were up by 4% from the previous quarter. Despite the price cuts, which triggered a price war, quarter-on-quarter sales growth was modest, as rising competition and a bleak economic outlook weighed on the industry. In January, Tesla reduced its prices by up to 20% globally after it missed Wall Street’s delivery estimates for 2022.
This year, CEO Elon Musk said the company could achieve 2 million vehicle deliveries, up 52% from last year. However, the first-quarter deliveries compared to analyst expectations of 430,008 vehicles, according to Refinitiv data based on seven analysts. While Tesla delivered 6% more of its mainstay Model 3/Model Y vehicles in the first quarter of this year than in the previous quarter, the number of deliveries for its higher-priced Model X/Model S vehicles declined by 38%. The automaker produced 440,808 vehicles for the first three months of this year.
Tesla’s Frankfurt-listed shares were down 0.6% at 0801 GMT, inline with weaker tech stocks, as rising crude oil prices revived concerns about inflation. Barclays analyst Dan Levy expected that Tesla might be pressured to lower prices further, as many automakers have matched the cuts, and concerns about a weakening economy persist. Further clouding the demand outlook are US electric vehicle subsidies, which may fall on some models starting on April 18.