Tesla Posts Record Profit After Slashing Prices Of EVs, Delivers 422,875 Vehicles In First 3 Months Of 2023

Tech billionaire Elon Musk-owned Tesla has reported a record profit after slashing the prices of its electric vehicles (EVs), which is up 4 per cent from the fourth quarter (Q4) of 2022.

Earlier in January, CEO Musk had said that Tesla could achieve 2 million vehicle deliveries this year.

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Tech billionaire Elon Musk-owned Tesla has reported a record profit after slashing the prices of its electric vehicles (EVs), which is up 4 per cent from the fourth quarter (Q4) of 2022, the media has reported. According to a report by news agency Reuters, Tesla says it delivered 422,875 vehicles for the first three months of 2023.

To recall, earlier in January, Chief Executive Office Musk had said that Tesla could achieve 2 million vehicle deliveries this year, up 52 per cent from 2022. Musk had previously missed his ambitious sales target for Tesla in recent years. Investors have been watching Musk's gamble that cutting prices would stimulate sales, although they worry about eroding margins.

Tesla had also slashed prices globally by as much as 20 per cent in the same month, unleashing a price war after missing Wall Street delivery estimates for 2022. The basic Tesla Model Y that used to sell for $65,990 (roughly Rs 54,35,100) now costs $54,990 (roughly Rs 45,29,100).

"If they wouldn't have done the price cut, it would have been ugly. I think what it tells you is the economy is getting tough," Gene Munster, managing partner at Deepwater Asset Management, was quoted as saying by Reuters.

Tesla missed the figure analysts surveyed by Refinitiv and FactSet were expecting. Other estimates show Tesla beat Wall Street expectations with its 422,875 vehicles delivered. Analysts surveyed by Bloomberg expected 421,164 vehicles would be shipped. The EV maker said consensus of more than 20 analysts called for 421,500 vehicles delivered, Tesla investor Gary Black said in a tweet.

To recall, in January, Tesla drastically lowered the prices of EVs across its line-up in the US and Europe, in an effort to boost sales as its stock plummeted more than 60 per cent. The least expensive EV, the Model 3 RWD, has dropped from $46,990 to $43,990, while the Model Y Long Range's price decreased 20 per cent from $65,990 to $52,990. Price reductions were made to other models too, including the performance versions of the Model 3 and Model Y, and the plaid versions of the Model S and Model X.

Musk-owned Tesla also cut the prices of its EVs across its line-up in the US for the second time, which might be in an effort to boost sales before the end of the quarter. According to a TechCrunch report last month, the EV firm has lowered the prices of its Model S sedan and Model X SUV.