The results of the second quarter of the American company, “Tesla”, showed, on Wednesday, that the profits of the pioneer in the electric car industry rose, thanks to an increase in sales, which was reinforced by the policy of reducing prices applied for months.
As expected by analysts, the price cuts have reduced Elon Musk’s profit margin, from 19.3 percent in the first quarter to 18.2 percent, reports Al-Rai daily quoting AFP.
The billionaire revealed his strategy in April, stressing that it would be better for the company to temporarily sell more cars at lower profit margins.
He explained that “It is better to deliver a large number of cars with a lower margin and reap this margin later as we gradually master” self-driving programs.
The number of vehicles delivered by Tesla rose to 466,140 vehicles during the last quarter, compared to 254,695 vehicles a year earlier. Sales amounted to 24.92 billion dollars, an increase of 47 percent, while net profit increased by 20 percent to reach 2.7 billion dollars.
“We are pleased to achieve such results in light of the macroeconomic environment,” the group said in a statement.
For his part, Musk confirmed during a conference call with analysts on Wednesday that “this is an incredible achievement on the part of the Tesla team.”
“In the long term, we believe that the economy will raise the volume (sales) skyward,” he added.
And the billionaire considered that this matter would be achieved, especially with the arrival of new products such as a robot taxi in a “revolutionary design that was manufactured in a revolutionary way.”
And he confirmed that the goal is to produce 1.8 million cars in 2023, but he warned that “production in the third quarter will be slightly lower due to the closure of factories for their renewal.”