DETROIT — — Tesla's second-quarter deliveries rose 83% from a year ago after the company cut prices several times on its four electric vehicle models and buyers took advantage of U.S. government tax credits.
Tesla's sales were better than Wall Street expectations. Analysts polled by data provider FactSet expected deliveries of 445,000 for the quarter. CEO Elon Musk has predicted that sales will grow about 50% per year for the near future. To reach that number for the full year, the company would have to sell 1.97 million vehicles. Analysts expect Tesla to fall a little short, delivering 1.82 million vehicles for the year.
But sales were almost certainly boosted by a $7,500 U.S. government tax credit from the Inflation Reduction Act that was available on nearly all Tesla models during the second quarter. Tesla's automotive gross profit margin , the company's gross profit compared to revenue, was as high as 30% early last year. But as interest rates rose, Tesla began cutting prices last year, and the margin fell to 19% in the first quarter. Analysts expect 16.9% from April through June, according to FactSet.