Like a stone in a snowball fight, Tesla's price cuts are working great. But, at what cost?
The pioneering electric vehicle front-runner had a record quarter with 422,875 deliveries—a 36% increase from Q1 2022 and a 4% increase from Q4 2022.
Sold more, but for less? Yes, some models have been discounted by up to 20% in some markets, but the company's market value is on the mend despite the lower profit per unit.
A year ago, a share in the company cost around $360 but hit a low in Jan 2023 at just $113. Following the news of the record quarter, the company is trading close to $200, a sign the price-cut tactic is working in some regards.
Rivian didn't break any records in Q1, but they did defeat the haters, AKA the "market analysts' estimates."
Q1 deliveries fell short of Q4 by about 100 vehicles but surpassed estimates by nearly 900.
On the other hand… Production fell short of estimates due to supply-chain disruptions (return of the haters).
Company shares fell 0.8% to $15.26 following the news.
Li Auto, one of China's EV brands, is blasting off and making her cousins look bad.
What is Li Auto doing so right? The company only sells SUVs and offers a unique hybrid configuration that runs the vehicle as an EV but has a built-in fuel tank to charge the battery and extend the driving range.
The company says it has nearly 20% of China's SUV market despite being pricier than Tesla's similar SUV Model Y.