‘Turbulent times’
It could just be that Tesla suddenly lowers the prices for its cars more often. That says Tesla boss Elon Musk after the presentation of the quarterly figures for Q2-2023. This shows that Tesla is still growing rapidly. In order to continue to do so, Musk wants to keep the number of cars produced continuously high – even if that is at the expense of the profit margin.
Tesla’s hefty price cuts from earlier this year hurt its profit margin. Where in Q2 last year the brand still had about 25 percent of the purchase price of every car sold, that was 18.2 percent in Q2 of this year. That is still a very good value compared to the more traditional car brands, but also one that fell considerably compared to last year.
One of the clear explanations for this margin decline is the price reductions that Tesla implemented earlier this year. Not only in Europe, where the brand adjusted prices in both Q1 and Q2 of the year, but also in China and the United States. In all major markets, Tesla lowered prices by thousands of euros, with one key advantage: interest in the products remained high despite relatively uncertain economic times. The Tesla Model Y is doing so well worldwide for a reason.
The number of cars produced is growing rapidly
In the past quarter, so from April to June, Tesla delivered more than 466,000 cars, while the brand built just under 480,000. Almost all cars therefore quickly find an owner, so that Tesla does not build up large stocks and remains resilient in potentially economically turbulent times. And that is exactly the intention, according to Musk, who even calls it ‘turbulent times’ after the figures presentation. When asked, he says that Tesla would lower the prices of its cars again if necessary to maintain interest in them.
That also works well; the number of people buying a Tesla is increasing rapidly. In Q2 of 2023, more than 466,000 Tesla customers received a car. A year earlier there were 254,695, and the numbers are still growing every quarter. This is entirely due to the Tesla’s Model Y and 3, because there has been no growth in the numbers of Model S and X for a while; of these, the brand delivered fewer than 20,000 in Q2.
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– Thanks for information from Autoweek.nl