Tesla set for record deliveries in 2023, yet short of Musk's goal

Tesla is poised to announce another record-breaking quarter for electric vehicle (EV) deliveries, albeit falling short of the ambitious 2 million annual target set by CEO Elon Musk at the start of the year.

Publication: 27.12.2023 - 15:22
Tesla set for record deliveries in 2023, yet short of Musk's goal
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Amidst slowing sales, the company has reduced prices for its four car models globally, particularly focusing on China, a market where Tesla has been losing ground to local competitors like BYD.

The competitive pricing strategy and a slowdown in EV demand have led other automakers, including Ford Motor, to scale back their electrification plans. This situation leaves Tesla as the clear leader in the U.S. market, contributing to its stock doubling in value this year. Senior analyst at CFRA Research, Garrett Nelson, anticipates that Tesla's fourth quarter will again be its strongest in terms of deliveries.

Delivery Projections and Market Challenges

Tesla is estimated to have delivered 1.82 million vehicles globally in 2023, marking a 37% increase from the previous year, with around 473,000 units in the fourth quarter alone. Despite Musk's January prediction of potentially reaching 2 million deliveries, external factors like increased borrowing costs have dampened demand. The company, aiming for a 50% average annual growth over multiple years, has ramped up year-end sales with significant discounts.

Looking Ahead to 2024

As Tesla heads into 2024, it faces new challenges including the loss of federal tax credits in the U.S. and the end of Germany's EV subsidy program, potentially leading to further price reductions. The company is also dealing with heightened regulatory scrutiny, particularly regarding its self-driving systems. Additionally, analysts are skeptical about the demand impact of Tesla's new releases, including the Cybertruck and an updated Model 3. With the company admitting to a period of lower growth, investors remain cautious about Tesla's margins, especially as it gears up for Cybertruck production and a new, more affordable car platform.

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