Tesla and Rivian weren’t supposed to sell this many vehicles last quarter. The two companies saw their stock prices jump 6.9 percent and 17 percent respectively Monday. The growing demand for electric vehicles underscores an industry-wide shift.
an industry-wide shift away from gas-powered cars, analysts said. “Consumers are not shying away from electric vehicles … in fact, it’s quite the opposite,” said Wedbush senior analyst Dan Ives.
Tesla’s blockbuster results show roughly an 83 percent increase from a year earlier, Ives said. “We’re seeing a green tidal wave of demand playing out,” he said.Tesla sales boomed in 2020 and 2021 as consumers, flush with savings and enabled by low interest rates that made it easier to buy autos on payment plans, bought high-priced electric cars faster than the company could produce them. The company’s stock price rose tenfold over that period.
At the same time, higher interest rates made it harder for potential buyers to buy vehicles whose prices can run into the high five figures or more.Tesla appears to have counteracted that pressure by cutting prices multiple times this year on its two cheapest models, the Model Y and Model 3. A new Tesla Model Y now costs as little as $47,490, according to Kelley Blue Book, roughly in line with the industry-wide average for a new car.
The difference between production and deliveries is not big enough to cause a panic, Munster said, but it could become a problem if that gap grows. “It’s a sign that they’re not utilizing their factories well,” Munster said.
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