Tesla Hits Record Deliveries in Q4, Delivers 1.8 Million for 2023
Tesla has achieved a new delivery record in the fourth quarter of 2023, successfully meeting its annual delivery target and alleviating investor concerns amid intensifying global competition, particularly in China.
The electric vehicle (EV) manufacturer reported 484,507 deliveries for Q4, surpassing Bloomberg’s Street estimates of 483,173. This figure sets a new all-time high for Tesla, exceeding its previous record of 466,000 units delivered in Q2 of the previous year.
From a production perspective, Tesla outperformed expectations by manufacturing 494,989 vehicles, well above the estimated 482,336. The company produced 476,777 units of its high-volume Model 3 and Model Y EVs, again topping the anticipated 468,680.
Tesla grouped sales of the Model X, Model S, and Cybertruck under the “other models” category without providing separate breakdowns, for the first time.
Not only that, the subject to operating lease accounting was 2%, noting that 98% of customers purchased outright through cash and loans instead of leasing. Tesla does not allow car purchases at end of lease terms.
Overall, in 2023, Tesla reported a 38% year-over-year growth in vehicle deliveries, totaling 1.81 million, while production increased by 35% to 1.85 million. Despite being short of its 50% compound annual growth rate (CAGR) target, Tesla had previously indicated that this goal would not be met due to factory shutdowns and improvements in Q3.
“This was an important quarter for Tesla to show strong deliveries with clear momentum into 2024 as demand has upticked since 3Q based on all our global checks,” commented Wedbush analyst Dan Ives. He noted that pricing remained stable and even increased in China throughout the quarter, marking a period of calm in the region’s price war, which he described as “music to the ears of Tesla bulls.”
Tesla’s achievement comes amid growing competition, particularly in China, where the company has recently been surpassed by BYD in Q4 deliveries. BYD reported 526,409 pure EV deliveries globally in Q4, overtaking Tesla for the first time.
While Tesla led in total 2023 deliveries, BYD’s expanding presence in mainland China and new territories like Europe suggests it may soon claim the global EV crown. But most BYD pure EV models are smaller and more affordable cars. Tesla’s mass production next-gen vehicle has yet to materialize but once it does, that’s when the EV space will get really spicy for the $25,000 USD vehicle market.
“This was a clear win for Musk and Tesla as hitting 1.8 million vehicles for 2023 was a major achievement in a choppy macro for EVs,” stated Ives, highlighting the company’s resilience in a fluctuating market.
Tesla will share its financial results for the fourth quarter of 2023 after market close on Wednesday, January 24, 2024.