Tesla Sets a New Delivery Record as Price Cuts Yield Results

Tesla Inc. delivered a record 466,140 cars worldwide in the second quarter, outpacing Wall Street estimates.

(Bloomberg) — Tesla Inc. delivered a record 466,140 cars worldwide in the second quarter, outpacing Wall Street estimates.

The results, posted Sunday, demonstrated six months of price cuts have had their intended effect. Analysts surveyed by Bloomberg had expected Tesla to ship 448,350 cars in the quarter.

While the deliveries are the most ever in a quarter for Tesla, and a 83% increase from a year ago, they also signal the EV maker faces other challenges. Austin-based Tesla handed over 13,560 fewer cars than it produced in the period, exacerbating an inventory overhang from earlier in the year.

In the first quarter Tesla also made more cars than it sold, reporting a surplus of about 18,000. The company introduced perks, such as three months of free fast-charging in the US for cars delivered before June 30, to entice buyers. Analysts have predicted price cuts will continue into next year.

Read More: Tesla Closes In on Another Deliveries Record After Price Cuts

The Elon Musk-led company doesn’t break out its quarterly delivery numbers by individual vehicle type, but said its Models 3 and Y accounted for 96% of sales. Tesla also makes the Model S and X.

Tesla is easily still the largest EV maker in the US, but it’s facing fresh competition around the world, and is working with a relatively old array of models. In China — its No. 2 market — the company has fallen well behind BYD Co., which has a much fresher lineup and increasingly global ambitions.

Tesla said that it will report 2Q earnings on July 19.

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