Tesla revealed its first production and delivery report for 2023, reaching a new record of deliveries during the first three months of the year and topping estimates from analysts. This represents a much-higher increase compared to last year's report.
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AUSTIN, TEXAS - JANUARY 03: A Tesla dealership is seen on January 03, 2023 in Austin, Texas. Tesla's quarterly earnings fell short of Wall Street's expectations and its 2022 delivery target, losing approximately $675 billion in market valuation. CEO Elon Musk suggested that 2022's economic interest rates hurt vehicle demand.
Tesla Q1 2023 Report
For Telsa's 2023 first-quarter production and delivery report, the company announced 422,875 deliveries and 440,808 produced vehicles. CNBC reported that these digits represent a 36% increase with only 310,048 reported last year and a 4% growth compared to 405,278 reported last year.
This is considered an all-time record for Tesla, topping most of the analysts' estimates. The company did not break out sales by region and surged instead through the global sales for its affordable tier vehicles, including Model 3 and Model Y SUV.
This increase was followed by price cuts for both vehicles in the United States and abroad, as they will close the market on Wednesday, April 19th. Tesla delivered 412,180 vehicles in the first quarter of 2023, with customers receiving their Model 3s and Model Ys before the end of March.
While the company achieved an increase for their more affordable vehicles, Tesla's more expensive tiers like Model X and Model S only accounted for 10,695 deliveries over the same time frame. This is a drop compared to the 17,147 delivered vehicles last quarter.
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Chief Executive Officer Elon Musk stated during the company's Q4 earnings call that he expected the company to deliver 1.8 million vehicles last year. If Tesla did not occur any problems when it comes to production, achieving the 2 million mark for deliveries is not impossible to achieve.
Tesla's Competitors
Despite these records, Tesla also missed some estimates for the first quarter deliveries due to the current economic state and rising competition. Reuters reported that some analysts expected Tesla to deliver 430,000 vehicles. Meanwhile, independent analyst Troy Teslike predicted the company to deliver 427,000 vehicles.
Investors have been watching Musk's strategy of cutting its princess to stimulate sales. Shares have soared by more than 68% this year and aim for the company to win a price war it started. For Telsa's stocks, it remains more than 50% down from their peak in November 2021.
Among its rising competitors are Lucid Group and legacy players like Ford Motor Co. Aside from these, Tesla has also been competing in the market of China with its price cuts in the world's largest car market. The company gained for its Model Y compact SUV to be the country's top performer.
Engadget reported that Tesla's latest delivery numbers can be interesting in how will it affect the company's bottom line as the cut pricing across most of its lineup during the first three months of the year. Model Y's pricing decreased from $65,990 to $52,990. For its Model S and X vehicles, the company decreased to $10,000.
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