Electric car manufacturer Tesla has achieved a record number of vehicle deliveries in the second quarter of the year by implementing price reductions to stimulate sales. The company has reduced prices in various markets, including the US, UK, and China, in order to compete with rival automakers. Tesla’s strategic focus on higher sales volume, even at the expense of lower profits, has paid off with a surge in deliveries. In Q2, Tesla delivered 466,140 vehicles, representing a remarkable increase of over 80% compared to the same period last year. Concurrently, the company ramped up its vehicle production to nearly 480,000 during the same timeframe. The price cuts, particularly in China, have been a successful move for Tesla, with China being its second largest market. Chinese carmakers have also reported a substantial increase in sales in June. Li-Auto, Nio, and Xpeng, based in Beijing, Shanghai, and Guangzhou respectively, experienced significant growth in deliveries during the month. Tesla has been contending with heightened competition globally and the impact of higher borrowing costs for customers. To counter these challenges, the company has implemented price reductions throughout the year. While these price cuts have affected profits, Tesla remains committed to ensuring affordability on a larger scale. The company is set to release its financial results for Q2 on July 19.
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