Tesla’s Price Cuts May Have Paid Off: Report | Entrepreneur

Tesla had a turbulent 2022 between falling stock prices and lagging sales amid rising competition. However, the electric vehicle manufacturer reported a record number of deliveries in the first quarter of 2023.

In Q1 2023, Tesla produced over 440,000 vehicles and delivered over 422,000, marking a nearly 36% increase in deliveries from the same period the previous year.

The uptick in sales may be in part due to Tesla’s price-cutting initiative that took place in January — the company slashed prices on the Model 3 and Model Y vehicles by nearly 6% and 20%, respectively. Just a week after Tesla announced the price cuts, interest surged for the company’s Model Y vehicle.

Related: Tesla Cuts Prices In China And Other Asian Markets: Report

“These price cuts, as well as inventory on the ground, will win Tesla market share and help consumers overlook the brand’s aging lineup,” said Edmunds analyst Jessica Caldwell, per Insider, at the time. “Lower prices and immediate availability undeniably resonate with the American consumer.”

And that buyer interest has proved to be more than just a Google search, as Model 3 and Model Y cars accounted for about 97% of the Q1 deliveries.

The official financial results for Tesla’s first 2023 quarter will be posted after the market closes on April 19.

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