Elon Musk’s Tesla hits record Q1 car deliveries after price cuts spur demand
a series of price cuts stoked demand.
Elon Musk’s electric car automaker on Sunday said it produced 440,808 vehicles and delivered 422,875. Sales were up 4% from the previous quarter.
The more affordable Model 3 and Model Y vehicles made up about 97% of the deliveries. Both models saw dramatic price cuts earlier this year, with the lowest-priced Model 3 dropping 6.4% and the Model Y Long Range falling nearly 20% in January.
Tesla expects to produce roughly 1.8 million cars by the end of the year, although CEO Musk in January said the company has the potential to hit 2 million.
Why did Tesla cut prices?
January’s price cuts allowed some of Tesla’s cars to qualify for a federal electric vehicle tax credit and helped drive demand.
“Affordability is what matters,” Musk said during Tesla’s investor day last month. “As you make the car more affordable, we’ll have demand go crazy.”
fell between 4% and 9%, according to Tesla’s website.
Here are the current prices for Tesla’s vehicles:
- Model S: $89,990
- Model S Plaid: $109,990
- Model 3: $42,990
- Model 3 Performance: $53,990
- Model X: $99,990
- Model X Plaid: $109,990
- Model Y Long Range: $54,990
- Model Y Performance: $58,990
More details are expected on April 19, when Tesla posts its first-quarter financial results.
Dig deeper:
- Looking to buy a Tesla?Company cuts prices as much as 20% to boost sales
- Buying a Tesla just got cheaper. Company offers another price drop on multiple models
- Tesla says it’s focused on improving affordability. What it means for future and current owners.
- Elon Musk shares little about new models at Tesla investor day.Here’s what we did learn.
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