After increasing discounts and incentives to promote sales amid economic uncertainty and intensifying competition, Tesla (TSLA.O) is expected to declare record vehicle deliveries.
Refinitiv expects Tesla to disclose global April-June deliveries of 445,000 units this weekend. The previous quarter’s 422,875 was up 5%.
As competition grows, especially in China, and demand falls, Tesla CEO Elon Musk’s aim to substantially expand sales this year confronts obstacles from aging and limited product lines.
Tesla lowered prices substantially since January, hurting first-quarter profitability. In recent months, it has raised reductions but not prices. In the second quarter, it upped inventory discounts to $1,600–$7,500, making all Model 3s eligible for full tax credits of $7,500 starting in June.
Tesla issued an email this week, “The Most American-Made Cars Are S3XY,” promising three months of Supercharging to Model 3 buyers who accept delivery by June 30, 2023.
Tesla offered an insurance subsidy of 8,000 yuan ($1,104) to consumers who bought and received an inventory Model 3 from June 16 to June 30 in China, its second-largest market after the US. An expert expects Tesla to sell a record number of vehicles in China.
“I think China was a little bit better than expected and so there might be room for a little bit of a positive surprise there,” said Globalt Investments senior portfolio manager Thomas Martin, who holds Tesla stock.
Tesla offers discounts in Europe and appears to have slowed output at its Berlin factory, hiring fewer temporary workers and skipping Saturday shifts.
