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- Tesla published its Q1 production and deliveries data Sunday, reporting a record number of deliveries.
- A series of price cuts initiated by the company in January seem to have increased demand for the EVs.
- Investors will get a better picture of how the cuts affected the company’s finances during an earnings call later this month.
Tesla reported a record number of vehicle deliveries for the first quarter of 2023, up about 36% from the first quarter of 2022, as the company pushed to increase sales with a series of price cuts this year.
The electric vehicle manufacturer reported production of about 440,000 vehicles, and just under 423,000 vehicle deliveries, the closest figure to sales that Tesla reports, in the first quarter.
Its Q1 earnings report is scheduled for later this month.
The sales increase may be partially attributed to the price war Tesla ignited earlier this year as it slashed prices of its Model 3 and Model Y by up to 20% in January. The less expensive Model 3 and Y are Tesla’s most popular vehicles by a wide margin, as the two accounted for about 97% of the Q1 deliveries.
Analysts told Insider’s George Glover and Beatrice Nolan in March that the cuts appeared to be working, as demand for the less expensive Teslas rose following the January cuts. However, whether the increase in demand offset the drop in prices, remains to be seen.
The latest numbers for the company led by Eon Musk indicate a roughly 4% increase from Q4 deliveries, when Tesla reported just over 405,000, and an increase of about 36% from the first quarter in 2022, when it reported about 310,000 deliveries.
Tesla’s stock has climbed back throughout the first quarter after falling about 65% over the course of 2022, and has risen from an early January low just over $100 to about $207 at the closing bell Friday.
The earnings report will come amid a series of investigations by federal regulators into crashes potentially caused by the company’s driving assistance software, as well as reports of faulty seat belts and steering wheels. Some of the company’s electric semi trucks, which are not included in the production and deliveries figures, were recalled last month over parking brake issues.
The Treasury Department also recently released new regulations for electric vehicle tax credits, which are set to go into effect later this month. They could impact the demand and affordability for Teslas and other electric vehicles as certain models become ineligible for $7,500 tax credits.