Tesla’s shares experienced a significant surge of over 6% during trading on Wall Street on Monday, following the announcement of impressive second quarter delivery numbers by the company’s CEO, Elon Musk. Thanks to Musk’s price reductions, Tesla managed to deliver a total of 466,140 vehicles in the April to June period, marking a 10% increase from the previous quarter and an impressive 83% increase from the same period last year. Additionally, the gap between the number of cars produced and the number of cars delivered narrowed to 13,560 in the second quarter, compared to 17,933 in the previous three months. Experts forecast that Tesla will deliver 1.8 million vehicles this year, surpassing its previous record of 1.3 million deliveries in 2022. The company’s decision to slash prices globally by up to 20% in January triggered a price war after Tesla failed to meet Wall Street’s delivery expectations for 2022. For instance, the base Model Y, previously priced at $65,990, now costs $54,990. Musk confidently claimed in January that Tesla had the potential to achieve 2 million vehicle deliveries in 2023, representing a 52% increase from the previous year. As a result of Tesla’s robust delivery numbers, its market capitalization was on the verge of crossing the $900 billion mark on Monday. Musk’s strategy of reducing prices in order to stimulate sales growth appears to have paid off, as Gene Munster, managing partner at Deepwater Asset Management, stated that “Tesla’s price cuts are working in a big way.” However, not everyone was impressed. Short-seller Jim Chanos argued that Tesla’s delivery numbers were already factored into the company’s valuation. Despite experiencing a 113% surge in stock price this year, Tesla is still trading at over a third below its peak price of $400 per share in late 2021.
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