Tesla Inc (NASDAQ:TSLA) scored record sales in the first three months of the year, the company said on Monday, as price cuts helped to boost demand for its electric vehicles (EVs).
Sales were up 5% from the previous quarter to 422,875, it said in a statement, with the figure sitting 36% higher than between January and March last year. Despite the record figure, that missed a mean estimate of 432,000, compiled by FactSet as of Friday.
Tesla shares fell nearly 7% to $193.12 Monday afternoon in New York.
Its model 3s and Ys were most sought after, making up 412,180 of the deliveries, after prices of both were slashed, with the latter falling 17% to US$54,990 during the quarter.
“The […] price cuts implemented early in 2023 have paid major dividends for Musk and co. as demand appears very solid despite an uncertain macro,” Wedbush analyst Daniel Ives said. Ives added demand in China was a key factor, with the figure also showing further easing of Covid-hit supply chains.
Wedbush gave Tesla a price target of US$225, up 8.5% on Friday's closing price of US$207.50.
Meanwhile, CEO Elon Musk claimed Tesla could top 2 million in sales this year, following from a record 1.3 million in sales – though this was below his own target.
—This story has been updated to include share movement and FactSet estimate—