The company just can't lose.
Tesla has released its second-quarter earnings for 2023, and the American automaker is killing it. It produced 479,700 vehicles and delivered 466,140, more than a 100% increase over the same timeframe last year when the company produced 258,580 and delivered 254,695.
This latest news comes shortly after several automakers buckled under pressure and announced that they'd switch to Tesla's charging format. In our opinion, Tesla has already won the charging war. And earlier this week, J.D. Power found Tesla's charging network to be the most reliable by far.
Tesla famously slashed its prices earlier this year, which it said wasn't meant to start an EV price war but more to keep itself competitive. Whether that's true or not is unknown, but the tactic is undoubtedly working.
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“Tesla has made a strategic choice to be a volume manufacturer,” Bill Russo, the founder and chief executive of advisory firm Automobility, told the BBC. “This was the main contributor to the sales increase, as its mainly higher-volume Model 3 and Model Y benefitted from the price war,” he added.
The company started off the year right when it slashed prices on the entire lineup, with some models receiving price cuts of over $20,000. From there, it's been a back and forth, with most of the price changes going down. Obviously, this has been the hit that Tesla wanted it to be, driving up sales to levels the company has never seen.
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All of these new buyers are converts from other brands that either didn't believe or weren't willing to see the electric future coming before it was right in front of them. Now that Tesla is actively advertising for the first time, we imagine sales will spike even more. (Still, do you really know anybody who doesn't know what a Tesla is?)
Brands like Ford, GM, Rivian, and many others are jumping on the NCAS bandwagon. Soon, all of these companies will release cars that can use Tesla Superchargers, opening up an entirely new and massive revenue stream for the company that will only grow into the future. Not to mention the incentives you get from federal and state governments.
It's an excellent time to be Tesla, and every time people think it's hit the ceiling, the automaker goes and raises it again.
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Keyword: Tesla's Price Cuts Are Paying Off Big Time