On Monday, Elon Musk-owned electric vehicle company Tesla reported its delivery numbers for the last quarter of 2022. The market leader, however, failed to deliver numbers that met Wall Street expectations.
The company reported deliveries of 405,278 vehicles for the fourth quarter of 2022. While Wall Street expectations came in the range of 420,000 to 425,000, Tesla hit a record with its deliveries.
In the fourth quarter, Tesla had a total production of 439,701 vehicles, bringing its total production for 2022 to 1.37 million. The company’s full delivery for 2022 came in at 1.31 million vehicles.
Tesla’s deliveries grew by 40 percent which was impressive but short of its guidance for the year. The company had forecasted a 50 percent growth in production and deliveries for 2022. The company would have had to sell 495,760 vehicles in the fourth quarter to reach this target.
The electric vehicle company’s fourth-quarter deliveries are up from the 343,830 vehicles that were sold in the quarter. The discounts offered by the company in the fourth quarter may have had a role to play in the sales it recorded. Tesla cut off $3,250 in early December and $7,500 just last week off the price of its Model 3 and Model Ys sold in the US in December. This came partially in response to the Inflation Reduction Act’s EV tax credits.
The company also provided similar discounts in Mexico and China, which is still unclear how this would reflect in its margins. Tesla failed to report its numbers according to region but assured that production at its new Austin and Berlin factories had increased in recent months. Production also increased in its Fremont and Shanghai factories; these factories had been affected by Covid-19.
Investors, however, have a few things to worry about. They are afraid that the lack of Covid-19 measures in China will take a toll on sales. Others are worried about how Elon Musk is at the centre of controversy and his involvement with his new company – Twitter.
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Ibhadojemu Lucky Emmanuel is a graduate of Education and Economics from the University of Benin. He has a passion for tech and business and has been writing professionally for over a period of five years. He's written across various topics and segments and knew tech-business was it when he first stumbled on it. He has a great passion for music and arts, and wants to visit as many countries as he can someday.
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