It was found that consumer demand for Tesla, which is leading price cut competition in the electric vehicle industry, has increased.
The Wall Street Journal (WSJ) reported on the 2nd that the number of vehicles Tesla delivered to contractors in each country in the second quarter was 466,000 units, an 83% increase compared to the same period last year. This is a figure that exceeds the 445,000 that experts expected.
The rapid increase in Tesla vehicle deliveries seems to be due to the recent expansion of the plant in Austin, Texas, and increased production capacity. WSJ said that Tesla’s aggressive price cuts are also a factor in increasing demand. Starting with a price cut in the US in January, Tesla has led price competition in the electric vehicle industry.
As the company continued to make further cuts, the selling price of the Model Y fell by more than 20%. The selling price of the Model 3 was reduced by 11%. In addition to the US market, Tesla also lowered its sales price in international markets such as Korea, Japan, Europe, and China. Tesla’s share price, which shook off last year’s sluggishness due to increased demand, is also recovering.
At the New York Stock Exchange (NYSE), on June 30, Tesla’s stock price soared more than twice compared to the beginning of the year to $ 261.7.However, it is not close to the level of November 2021, when it exceeded $ 400.This seems to be because the demand for Tesla has increased in the market, but the rate of return has decreased due to the price cut policy.
Tesla’s operating profit margin in the first quarter was 11.4%, down nearly half from 19.2% in the same period last year. In this regard, Tesla CEO Elon Musk said in April, “I think it is the right choice to pursue large-scale production rather than reducing production and obtaining high returns.