Tesla Sales Jumped in the First Quarter
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Tesla sales rose 5 percent in the first three months of the year after it cut prices on its electric cars and increased production at new factories in Texas and Germany.
Tesla said Sunday that it delivered nearly 423,000 vehicles from January through March, up from 405,000 in the last quarter of 2022, in line with Wall Street expectations.
The company delivered 310,000 vehicles in the first quarter of 2022.
Tesla, which dominates sales of electric vehicles in the United States, has recovered some of the credibility with investors that it lost during a tumultuous 2022, when Elon Musk, the automaker’s chief executive, was distracted by his acquisition of Twitter. Tesla shares have risen 90 percent so far this year, though they are still worth about half as much as they were in November 2021.
In the United States, Tesla was among the chief beneficiaries of changes to the federal tax credits available to buyers of electric cars. Last year, Democrats eliminated a cap on the number of vehicles from a given manufacturer that qualified for the $7,500 credit. Tesla had used up its quota but in January purchases of its two most popular cars regained eligibility for the $7,500 tax credit.
But Tesla is probably ahead of competitors like Ford Motor in meeting the requirements for other models.
Tesla has also been able to ramp up production at new factories near Austin, Texas, and outside Berlin, reducing the time customers have to wait for cars. Tesla said in March that the Berlin factory increased its production capacity to 5,000 cars per week.
Investors remain concerned about Tesla sales in China, where it faces intense competition from domestic competitors like BYD. And Tesla’s ability to dominate the U.S. market will be tested this year as established carmakers roll out new electric models. General Motors plans to begin selling three new electric cars in 2023, including a sport utility vehicle with a base price of around $30,000 and a pickup truck starting at about $40,000 — both cheaper than Tesla’s most affordable car, which starts at about $43,000.
Mr. Musk has promised that the company’s much delayed Cybertruck will go on sale before the end of the year. But mass production of the futuristic looking pickup will not begin until 2024. Until then, Tesla will have no offering in one of the most popular segments in the United States.