As price reductions and U.S. tax subsidies helped make its electric vehicles more accessible, Tesla Inc. said on Sunday that it delivered a record number of vehicles in the second quarter, exceeding market expectations.

The Elon Musk-led company delivered 466,140 vehicles from April to June, an increase of 83% from a year earlier and 10% from the previous quarter.

According to nine analysts surveyed by Refinitiv, the average analyst expectation was for Tesla to deliver 445,000 vehicles, with the lowest estimate coming in at 439,875 and the highest at 450,000.

Although the difference has decreased from 17,933 in the first quarter, the world’s most valuable carmaker produced 13,560 more vehicles than it delivered in the second quarter.

“The price cuts was a smart poker move for Tesla and paying major dividends in the field especially for the China market,” Dan Ives, an analyst at Wedbush Securities, said.

Despite fierce competition from market leader BYD, Tesla is predicted to achieve record sales in China, its second-largest market after North America.

“We believe margins will trough the next few quarters,” Ives added.

Since late last year, Tesla has reduced its prices, beginning in China, which has hurt its first-quarter profitability. Elon Musk, CEO of Tesla, stepped up the price battle in April, declaring that the electric vehicle (EV) manufacturer would put sales growth ahead of profit in a struggling economy and heightened competition.

Since then, it has increased discounts across all of its product lines in an effort to reduce inventory, and starting in June in the United States, it will make all of its Model 3s eligible for the full $7,500 tax credit.

The company delivered 446,915 Model 3 compact cars and Model Y sport-utility vehicle, as well as 19,225 of its Model S and Model X premium vehicles.

Ford Motor Company and General Motors have both agreed to adopt the company’s North American Charging Standard (NACS), which has led to a string of victories for the electric vehicle pioneer in the fast-charging market.

(Adapted from Investing.com)