Tesla’s Record-Breaking Deliveries After Price Cuts!
In the first quarter of the year, Tesla produced and delivered the highest number of cars ever, which was made possible by the reduction in prices of its electric vehicles by Elon Musk. The company delivered 422,875 cars in the first three months, a 4% increase from the preceding quarter, while also setting a production record of 441,000 cars during the same period, according to the company's announcement on Sunday.
Last month, in an attempt to boost sales and compete with other carmakers like Rivian and Polestar, Tesla's CEO, Elon Musk, reduced the prices of the company's vehicles by up to 9%. Despite this action, Tesla continues to struggle against its competitors, particularly in China. During a recent investor day, Musk acknowledged that while there is a strong desire for people to own Tesla vehicles, the main obstacle is their affordability.
As of now in 2021, the share price of the company has almost doubled to $207, attributed to the price cuts and increased production efforts of Musk that have been well received by investors. However, it is still lower than the peak of $407 in November 2020.
The company has been positively impacted by modifications in the US tax regime for electric vehicles introduced last year, which removed a cap on the number of eligible vehicles from a single manufacturer for a $7,500 tax credit, with the aim of boosting the electric vehicle market.
Tesla's CEO, Elon Musk, plans to expand the company's vehicle portfolio by introducing a more affordable model and is focusing on ramping up production at its newly built factories in Germany and Texas.