On Friday, Tesla witnessed a higher stock price when it topped market estimates as its price-cutting strategies were proven effective.
It increased by 1.62% to $261.68 per share on June 30. Likewise, it is expected to go up by 0.06% to $261.85 apiece in the upcoming session.
The electric vehicle (EV) maker delivered an impressive number of vehicles in its second quarter, which surpassed forecasts. Also, the US federal credits contributed to making their vehicles more affordable.
From April to June, the company handed 466,140 EVs showing an 83.00% improvement from a year earlier.
According to analysts, they expected Tesla to deliver around 445,000 cars. Their lowest estimate was at 439,875, while 450,000 was their highest consensus.
Moreover, the EV-making giant produced 13,560 more vehicles than in the second quarter but decreased from 17,933 in Q1. Based on experts, Tesla was wise for making price cuts and paying significant dividends, mainly in the Chinese market.
Since last year, it has been cutting prices in China, affecting its first-quarter margins. In April, Elon Musk doubled down in the price war. He said that they will focus on price growth due to rising competition.
In addition, Tesla increased discounts for all its line-ups to reduce inventory. Also, it aims to make its Model 3s qualified for $7,500.00 of full federal credits in the US.
Model 3 of Tesla Gains Major Price Cut
Tesla initiated another price decrease for its Model 3 sedan and Model Y sports utility vehicle (SUV).
The company cut $3,000.00 off both entry versions. As a result, the 3 RWD costs $62,500.00 while the Y RWD is $67,500.00. Also, the Performance AWD versions for the two are $92,400.00 and $97,500, respectively.
Its effort to make prices affordable prepares an updated Model 3 called Project Highland. According to experts, it may lead to the EV gaining a better CATL battery pack.
It would have 10.00% more storage, making the sedan have 600.00 km of range. However, it is not considered a game-changing increase, but it is still positive news for Model 3 buyers.