Tesla has announced record car deliveries in the second quarter of the year after US business was bolstered by federal tax credits for electric vehicles.
Elon Musk’s firm delivered 446,140 cars worldwide in the three months leading up to June, outdoing its own prediction of 445,000.
It marked an 83 percent increase on sales from the same period last year when production was hampered by Coronavirus restrictions in China.
As of Monday morning, Tesla stocks are up more than 7 percent following the news.
Sales in the US have benefited from a federal tax cut imposed on electric cars by the Government in April.
Tesla posted record sales in the second quarter of the year after sales were bolstered by a US federal tax cut to electric vehicles
It comes as Musk faces criticism for curbs he has imposed on Twitter
The scheme – designed to accelerate America’s shift away from gas cars – means motorists can claim up to $7,500 back in tax credits when they buy the eco-friendly vehicles.
Only ten models – which include plug-in hybrid cars – are eligible for the full sum of money. But a further seven entitle buyers to $3,750.
Among those to benefit from the full discount is the Tesla Model 3 and Tesla Model Y – both of which retail for between around $41,990 and $56,990.
But the generous cut means a Tesla Model 3 is now cheaper to buy than a Toyota Camry in California.
The all-electric vehicle starts at $40,240, but the rebate – combined with another California tax rebate of $7,500 depending on income and other requirements – knocks it down to $25,240.
Meanwhile, Japanese-made Camry lists at $26,320 or higher.
According to the latest figures, the Model 3 and Y accounted for almost all – 446,915 – sales in the second quarter of the year.
The figures provide a welcome boost for Musk who has come under fire for restrictions he has imposed on Twitter.
The 52-year-old billionaire plans to sharply increase sales this year and since January Tesla has embarked on an aggressive price-cutting campaign to lure new customers in.
It has also offered a number of perks to new customers, such as three months of free-fast charging in the US and insurance-related subsidies in China.
Ben Kallo, an analyst at wealth management firm R.W. Baird, praised the strategy to Bloomberg: ‘It’s a big beat.
‘People were still bracing for another round of price cuts, and this big delivery number makes that less of a risk.’
The Treasury introduced the federal tax cut on EVs as part of its Inflation Reduction Act.
Motorists can claim up to $7,500 back in tax credits when they acquire one of these ten electric vehicles
The Tesla Model 3 qualified for the full credit but the Standard Range version is only eligible for half of that
The intention was to bring down the cost of an electric which has historically been too expensive for the average consumer.
But the new rules are filled with complex qualifying criteria detailing how a certain percentage of battery parts must come from the US in order to qualify for the full $7,500 rebate.
As a result, only ten of the 49 electric vehicles for sale nationally are eligible for the full credit.
Of those eligible, nearly all are manufactured by either General Motors Co., Tesla Inc., and Ford Motor Co.
However, a legal loophole means many drivers are now opting to lease electric vehicles to qualify for the credit.
This is because electric cars which are leased are defined as ‘commercial’ vehicles under the rules.
‘Commercial vehicles’ are exempt from the requirements meaning borrowers have a wider selection to choose from.
In April, leases accounted for 41 percent of all electric vehicle deliveries – four times the amount in December.
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