Slashing Prices Led Tesla to Soaring Deliveries
Still, rising competition and an uncertain economy threaten EV maker's quarter-on-quarter sales growth.

Tesla put deliveries at 422,875 vehicles in the first three months, 36% higher than the same quarter in 2022.
IMAGE: Pexels/Craig Adderley
Tesla beat previous records for quarterly vehicle deliveries after cutting its prices. However, analysts warn rising competition and an uncertain economy may dampen the EV maker’s quarter-on-quarter sales growth.
The brand put deliveries at 422,875 vehicles in the first three months, up 4% from the previous quarter and 36% higher year-over-year.
Tesla delivered 6% more Model 3/Model Y vehicles in the first quarter over the fourth quarter. However, the number of deliveries for its higher-priced Model X/Model S vehicles plummeted 38%.
The automaker manufactured 440,808 vehicles in the first three months. Tesla tweeted out that its Texas factory built 4,000 Model Y cars last week. It reported in February that its German plant could produce 4,000 vehicles a week.
Tesla slashed its prices by as much as 20% in January after missing 2022 Wall Street delivery estimates. Now, the basic Model Y costs $54,990 compared to its previous price of $65,990.
"If they had not cut the price, it would have been ugly. I think what it tells you is the economy is getting tough," Gene Munster, managing partner at Deepwater Asset Management, told Automotive News.
More Dealer Ops

Dealer Debrief: Defection Data & EV Updates
In this week's debrief, host Lauren Lawrence discusses how to use defection data to your advantage and the latest on EV sales and charging infrastructure.
Read More →
How Defection Data is Bridging the Dealership Conversion Gap
Lead volume is flat, cross-shopping is up and brand loyalty is in retreat. As confident sales teams keep losing buyers they thought they had, daily industry sales data is showing dealers exactly where their funnel is breaking and how to fix it without buying a single new lead.
Read More →
Dealer Debrief: Where are you losing customers?
In this week's debrief, host Lauren Lawrence discusses the hidden leaks in dealerships where you might be losing customers without even realizing it.
Read More →
Dealer Debrief: Improving Your Inventory Management
In this week's debrief, host Lauren Lawrence covers a new survey that shows what service technicians really want and two launches that could help improve your inventory and vehicle life cycle management.
Read More →
Ladies and Gentlemen, This Is a Dealership: Why the Fundamentals Still Decide Who Wins
A teaching moment by a legendary football coach happens to apply perfectly in the auto retail space. Learn what it is and how to use it to your store’s advantage.
Read More →
What Market Timing Mistakes Mean for Your Reinsurance Program
When volatility hits, dealer-owned reinsurance programs face a familiar temptation: pull back and wait for calmer waters. New data from BOK Financial shows why that instinct can quietly cost you years of surplus growth.
Read More →
Dealer Ads and the FTC
The agency has made it clear in recent enforcement actions and warnings, in auto retail and other industries, that advertised prices must include all nonoptional costs to the consumer.
Read More →
Used Autos Supply Dwindles
The March shopping surge, despite high prices, cut into inventory by the most since the thick of the pandemic, Cox Automotive analysts calculated.
Read More →
Managing Risk Effectively Through Changing Times
The variables influencing risk pricing have changed significantly over the past five years. Being proactive and responsive to emerging trends is not optional but essential.
Read More →
Survey Reveals What Won't Fix What's Breaking Car Sales
AutoPayPlus says extra-long auto loans are trapping consumers and threatening the dealer trade-in cycle, and that the industry is leveraging the wrong tools to combat high MSRPs.
Read More →
