David Zalubowski/AP
- Tesla reported record-breaking Q1 deliveries of 422,875 vehicles.
- Analysts warn price cuts alone can't keep competition at bay.
- Even after deliveries increase, excess Teslas are piling up.
Elon Musk's plan to boost demand for Tesla vehicles with price cuts appears to be working after the electric car company reported a 36% increase in sales in the first quarter.
This record-breaking first-quarter delivery report from comes after Tesla engaged in a series of price cuts and other purchase incentives for the last several months, a move that some investors worried would have too much adverse impact on the company's profit margins.