Tesla sees surprise sales boost after cutting prices

Tesla sales, hit by a significant slump earlier this year, may be showing signs of revival.

Elon Musk’s electric car-maker delivered nearly 444,000 vehicles in the three months ended 30 June, up more than 14% from the prior quarter.

That was far more than most analysts had expected – though still down nearly 5% from the same period in 2023.

Tesla has been navigating a slowdown in demand, as high borrowing costs weigh on buyers and competition increases.

It has been slashing prices to try to win back buyers and this spring announced plans to sack more than 10% of its workforce amid the downturn.

At the start of the year, Tesla blamed its poor performance in part on supply shortages due to shipping disruption in the Red Sea and an arson attack at its factory in Germany.

But analysts say Tesla needs to freshen its line-up, if it hopes to stop rivals from making inroads.

The company started selling its cyber-truck last year but that remains a tiny part of its business. Its mainstream Model 3 sedan dates to 2017.