Tesla Sales Jumped in the First Quarter
The electric car company's decision to slash prices has revived demand.
After lowering the price of its electric cars, Tesla sales increased 5 percent in the first 3 months of the year. Also, new factories were built in Texas and Germany.
Tesla announced Sunday that it shipped nearly 423,000 vehicles between January and March. This is in line with Wall Street's expectations.
In the first quarter 2022, 310,000 vehicles were delivered by the company.
Tesla, which is the dominant seller of electric cars in America, has regained some credibility with investors. This was after Elon Musk, the automaker’s chief executive, became distracted by Twitter's acquisition. Tesla shares have increased 90 percent this year, but they are only half the value they were in November 2021.
Tesla was one of the main beneficiaries of the changes in federal tax credits for electric car buyers in the United States. Democrats removed a limit on how many vehicles a manufacturer could qualify for the $7.500 credit last year. Tesla had exhausted its quota, but January's purchases of its two most-loved cars restored eligibility for the $7.500 tax credit.
On April 16, the tax credit rules will be more strict. Companies must purchase battery components and minerals from the United States, or any of its allies. Tesla informed buyers that the Model 3 sedan's least expensive version, which is made in China, won't be eligible for the full credit.
Tesla Motor is likely to surpass Ford Motor in terms of meeting the requirements for other models.
Tesla was also able to increase production at two new factories outside Berlin and Austin, Texas. This has reduced the waiting time for customers. In March, Tesla announced that its Berlin factory had increased its production to 5,000 cars per day.
Tesla's sales in China are still a concern for investors, as it is facing fierce competition from domestic rivals like BYD. As established carmakers introduce new electric models, Tesla's ability in the U.S. market will come under scrutiny. General Motors will begin selling three new electric vehicles in 2023. This includes a sport utility vehicle starting at $30,000 and a pickup truck beginning at $40,000 -- both less expensive than Tesla's most affordable model, which starts at $43,000.
Musk promised that the much-delayed Cybertruck would be available for sale by the end of this year. The production of this futuristic-looking pickup won't begin until 2024. Tesla will not have a product in this segment until then.