Tesla Vehicle Deliveries Surge; Stock Up In Premarket

(RTTNews) - Tesla Inc. said it produced nearly 480,000 vehicles and delivered over 466,000 vehicles in the second quarter, both significantly higher than the prior year. The growth reflects the automotive major's recent action to slash vehicle prices in its key markets to boost demand.

In pre-market activity on Nasdaq, Tesla shares were gaining around 7 percent to trade at $278.90.

In a statement on Sunday, the company said it produced 479,700 vehicles in the second quarter, compared with 258,580 vehicles in the prior year. The latest quarter production included 19,489 units of Model S and Model X and 460,211 units of its Model 3 and Model Y.

In the quarter, the company delivered 466,140 vehicles, an increase of about 83 percent from 254,695 vehicles last year. It delivered 446,915 units of its Model 3 and Model Y, along with 19,225 units of its Model S and Model X.

The company has been facing challenges for some time as higher borrowing costs weigh on buyers, while rivals offer more electric options. Since the beginning of the year, the carmaker has been trimming vehicle prices in its major markets of U.S., Europe and China amid slowing demand for electric vehicles, recession fears, higher interest rates as well as rising competition from rival EV makers.

Chief Executive Elon Musk earlier had said that Tesla would focus on bringing prices down to drive demand and that it had seen improved demand for certain models following their price cuts.

Meanwhile, Tesla in mid-April increased the prices of its Model S and X premium electric vehicles in the U.S., its website showed. The price hike followed after the company reported weak profit in its first quarter, even as revenues grew in double digit percentage.

Following the initial price cuts, Tesla's first-quarter vehicle deliveries had increased 36 percent from the prior year. It delivered 422,875 vehicles and produced 440,808 vehicles in the first quarter.

In a recent development, Tesla's Model Y once again was named the most American-made car in mid June. According to the latest rankings released by Cars.com, Tesla claimed the top four spots on the 100-car list, with the Model Y, Model 3, Model X, and Model S securing the first through fourth positions, respectively.

According to the new edition of the International Energy Agency's annual Global Electric Vehicle Outlook, global demand for electric cars is booming in 2023 with sales of the vehicles expected to grow by 35 percent this year to reach 14 million from the more than 10 million electric cars sold worldwide in 2022.

The majority of the electric car sales are happening mainly in three markets - China, Europe and the United States, the report said. By 2030, the average share of electric cars in total sales across China, the EU and the U.S. is set to rise to around 60 percent.