Electric vehicle (EV) pioneer, Tesla, achieved a milestone in the second quarter of 2023, reporting a top-tier number of vehicle deliveries. The company’s strategic move to reduce prices in key markets such as the US, UK, and China stimulated sales and bolstered its competitive position in the market.

Tesla CEO Elon Musk previously stated that this approach was essential to company growth. In January, Musk confirmed that there is significant demand for Tesla cars from a large number of people who cannot afford them.

Musk tweeted to clarify the company’s intentions regarding price reductions. He emphasised that the objective was not to initiate a price war but rather to make Tesla’s vehicles more affordable on a larger scale. By reducing prices, Tesla aims to make electric vehicles more accessible to a broader range of consumers. This aligns with its mission to accelerate sustainable transportation transition.

Tesla took action by reducing the cost of its vehicles in January and March.

The results of this strategy have become apparent, with Tesla delivering 466,140 vehicles in the second quarter. This marks an increase of over 80% compared to the same period the previous year. Furthermore, vehicle production soared to nearly 480,000 units during the same quarter.

In the latter part of 2022, Tesla faced challenges with its supply chain, leading to difficulties in delivering cars to customers. As a result of logistical problems and a decline in demand driven by concerns about rising interest rates and a potential recession, Tesla delivered 55,760 fewer vehicles than it produced in the final three months of the year. These setbacks affected the company’s ability to meet customer demands and maintain smooth operations.

Previously, Tesla had concerns regarding Elon Musk’s focus on his newly acquired ownership of Twitter. This led to speculation about his attention being diverted from the company. These concerns affected Tesla’s stock performance, hitting a two-year low in late December. However, the recent record-breaking sales figures indicate that any worries about distraction have been overcome. The strong sales performance suggests that Tesla has addressed concerns and regained market confidence.

Tesla’s share price rallied 142% during the first six months of 2023. This surge in the stock price restored Elon Musk’s position as the world’s richest man. It also propelled him back to the top spot after being briefly knocked down in December.

China is Tesla’s second-largest market, trailing only North America. To compete with local electric car manufacturers, Tesla has implemented price reductions specifically for the Chinese market.