In 2022, under Elon Musk's leadership, the car manufacturer reported an annual delivery figure of 1.31 million vehicles and a production of 1.37 million electric vehicles. These updated figures reflect a 38% increase in deliveries and a 35% increase in production compared to the previous year. In 2022, the company experienced a 40% year-over-year growth in deliveries from the figures reported in 2021.
During its latest earnings call in October 2023, Tesla's executives provided guidance indicating an expected minimum of 1.8 million deliveries for the entire year. This figure had been revised down from an earlier goal of 2 million deliveries.
According to StreetAccount's consensus of estimates compiled by December 28, analysts had anticipated Tesla to announce deliveries of around 477,000 for the quarter marking the end of the year. It's worth noting that while deliveries serve as the closest approximation of sales in Tesla's reports, the term itself isn't precisely defined in the company's communications to shareholders.
uring the third-quarter earnings call in October, Tesla's CEO Elon Musk expressed confidence that the company's Model Y, an entry-level SUV, had the potential to become not just the top-selling car in terms of revenue but also in sheer unit volume for the year. Tesla doesn't provide specific breakdowns of delivery and production numbers for individual models. Instead, it reported combined figures:
During the quarter, Tesla manufactured a total of 476,777 Model 3 and Model Y vehicles and recorded 461,538 deliveries for these models. Details regarding the production and delivery figures for the Model S or X were grouped under the category of "Other Models," with 18,212 units produced and 22,969 units delivered in that quarter.
Moving into the last quarter of 2023, Tesla introduced its updated iteration, known as the Highland version, of the entry-level Model 3 sedan in certain markets. Additionally, in December, the company commenced deliveries of a limited quantity of its latest electric vehicle, the distinctive and somewhat controversial Cybertruck, within the United States.
Tesla opted not to disclose specific figures for the Cybertruck or its Semi, the heavy-duty commercial truck manufactured in limited quantities at its Reno-based battery plant.
Throughout the final quarter of 2023, Tesla implemented widespread price reductions across global markets. This strategy was in response to what Tesla CFO Vaibhav Taneja described as "a period of economic uncertainty, higher interest rates, and shifting consumer sentiment," highlighted during the company's October earnings call.
BYD, Tesla's major global competitor, reported sales of 3.02 million new energy vehicles in 2023. Within this figure, 1.6 million were battery-electric passenger cars, while 1.4 million were hybrid electric models.
Amidst Tesla's journey, some potential and existing customers have announced intentions to abstain from purchasing Tesla vehicles due to Elon Musk's controversial statements on X (formerly Twitter) and in public appearances. In November, the White House criticized Musk for promoting "antisemitic and racist hate" through a series of posts on X, for which Musk later expressed regret.
While Tesla previously avoided traditional advertising, the company shifted its approach in the latter half of 2023, initiating advertising campaigns. Tesla now operates two vehicle assembly plants in the U.S., along with two international plants in Shanghai and Brandenburg, Germany. Additionally, they have a battery factory in Sparks, Nevada, and other facilities dedicated to manufacturing spare parts, charging equipment, and large-scale batteries for home or utility energy storage. In March, Tesla announced plans to build another car plant in Nuevo León, Mexico.
Addressing the 2024 delivery outlook during the previous earnings call, Elon Musk cautioned against perpetual 50% compound growth rates, jesting about surpassing the mass of the known universe. However, he anticipated rapid growth, surpassing that of any other car company. Taneja emphasized Tesla's focus on efficiently growing volumes and indicated that 2024 guidance would be provided during the upcoming earnings call.
Tesla is scheduled to discuss its fourth-quarter results on January 24, 2024, at 5:30 p.m. ET.
-------The article is excerpted from the CNBC.