Tesla sales break records after Elon Musk slashes price

After Elon Musk’s drastic price cuts , Tesla sold a record number cars in the first three month of the year to meet growing competition.

It announced that the world’s most important carmaker produced 422,875 vehicles during the first quarter.

This surpasses Tesla’s previous record, 405,278 at last year’s end. It was also up 36 percent on the same quarter last.

Tesla has lowered the price for its most popular cars, Model 3 and Model Y. This was in response to increasing competition in China, where it is being challenged by a wave upstart electric car manufacturer.

The company cut UK prices by as much as £8,000 in January. This was despite steadily increasing them due to increased demand for electric vehicles and rising costs of components.

Tesla’s chief executive, Mr Musk, was also the second-richest man in the world. He admitted last year that Tesla’s cars were becoming “embarrassingly expensive”.

Last month, the company hosted an investor day to discuss how it would increase production efficiency in order to lower prices.

Musk stated that he would like to make a mass-market vehicle for $25,000 (£20.251).

Wall Street forecasts were slightly higher than the delivery numbers, which provided relief for investors following last year’s slump in Tesla shares.

Despite the recent rally, shares have increased by 92pc this year. However, they are still around 50pc lower than 12 months ago.

The Model 3 and Y of Tesla, which were priced at £42,990, and £44,990, respectively, accounted almost for all sales. Only 10,615 vehicles were delivered by the more expensive models S or X.

Musk said production of the long-delayed Cybertruck pickup will start later in the year. It was first revealed in 2019 by Musk.

Pre-orders for the vehicle are believed to be placed by more than 1 million people.

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