Tesla Second Quarter Sales Better than Estimate, Share Price Increases

Tesla, one of the biggest electric vehicle (EV) companies, has seen a slight decline in sales in the second quarter. Tesla’s international sales in the second quarter fell by more than four percent year-on-year to 4,36,956 units. It was 4,66,140 units in the same period last year. However, Tesla’s sales have declined less than analysts’ forecasts.

This is the second consecutive quarter in which the company’s sales have declined. Despite reducing prices and offering financing at low interest rates, Tesla’s sales have not increased. In the last quarter, the company sold more than 33,000 units from manufacturing. A large part of Tesla’s sales came from low-priced Model 3 and Model Y. In the first six months of the current calendar year, the company has sold more than 9,10,000 units. Recently, the company’s Chief Executive Officer, Elon Musk, had said that the company would launch new and affordable models next year.

Last year, Tesla’s Model Y was the best-selling car in the world. Japanese automobile company Toyota’s Corolla was the best-selling car in the international market for almost two decades. Last year, it was at the fourth position in terms of sales. According to data from Jato Dynamics, last year Tesla sold around 12.2 lakh units of Model Y. This is an increase of around 64 percent on a year-on-year basis. Toyota registered a decline of around 19 percent in Corolla sales. Last year, Toyota’s RAV4 was the second best-selling car with sales of around 10.8 lakh units.

Tesla has been facing difficulties for the last several months. Despite reducing the prices of electric cars, the company’s sales are not increasing. Due to this, Musk has decided to lay off employees in the company. Since the beginning of this year, the company has laid off about 6,000 workers. It has laid off workers from software, service and engineering departments. This is an indication of a major change in the company’s strategy. In the first quarter, the company’s EV deliveries had decreased by about 8.5 percent.