Tesla posts record car deliveries in price battle

Tesla announced record car deliveries in the second quarter as it remained in a price war in the rapidly expanding electric car market.

Elon Musk’s firm delivered 466,140 cars in the three months to the end of June, higher than predictions of 445,000 and up from 422,875 in the first quarter.

Production also increased to 479,700, compared with 440,808 in the first quarter. Most of the vehicles were Tesla’s cheaper Model 3 and Model Y cars, which made up 446,915 of total deliveries.

The better-than-expected figures will provide a boost for Musk, who plans to sharply increase sales this year despite concerns about the company’s limited product range as well as tough competition in China, Tesla’s second-largest market.

The firm embarked on an aggressive price-cutting campaign in January and has increased incentives to lure customers.

But some analysts have warned the strategy could dent Tesla’s profit margins, while others have cautioned that several deals to let rivals use Tesla’s charging stations risked eroding its market share.