Tesla announced outstanding fourth-quarter sales as it aimed to produce more Model 3 electric vehicles before the Inflation Reduction Act (IRA) eliminates federal tax subsidies for certain models in the new year.
The world's most valuable automaker delivered a record number of cars in the fourth quarter, achieving its 2023 goal of 1.8 million. LSEG questioned 14 experts and determined that Tesla shipped 484,507 cars in the previous three months, exceeding expectations of 473,253, according to Reuters.
People try Tesla's electric vehicle Model 3 at its booth during the China International Supply Chain Expo (CISCE) in Beijing on December 1, 2023.
Deliveries went up 11% from the third quarter to the fourth, even though production was slow because assembly lines were being upgraded for the new Model 3 mass-market car. There were 461,538 Model 3 cars and Model Y SUVs delivered by Tesla. They also sent out about 23,000 units of other types.
Analysts thought that sales would go through the roof in the fourth quarter because tax breaks for some models would end, which would affect supplies the following year. In particular, Tesla's Model 3 small sedans with rear-wheel drive and long-range will not be able to get $7,500 in federal tax credits in the new year because of changes to the IRA's rules on where to get battery materials.
In Q4, we produced approximately 495k vehicles & delivered over 484k vehicles.
— Tesla (@Tesla) January 2, 2024
Full year 2023
Deliveries: 1.81 million (+38% YoY)
Production: 1.85 million (+ 35% YoY)
Our Q4 Earnings Call will be streamed live on X on January 24 at 4:30pm CT
→ https://t.co/vWPOkQVGmV
Elon Musk Remains Optimistic on Tesla Exceeding Apple's Value
Tesla CEO Elon Musk earlier remarked that he thinks the company could be worth more than both Apple and Saudi Aramco put together in five years. "In fact, I think it will be very difficult. It will require a lot of work, some very creative new products, managing expansion, and always luck. But for the first time, I see a way for Tesla to be, let's say, roughly twice the value of Saudi Aramco," the tech mogul remarked, as quoted by Teslarati.
Read Also: OpenAI Thrives Amid CEO Turmoil: Annual Revenue Skyrockets 20% to Surpass $1.6 Billion
Apple is worth $2.99 trillion and Saudi Aramco $2.13 trillion. However, Tesla's greatest market cap was $1.23 trillion in November 2021. At the Q3 2022 earnings call, Musk said Tesla might outgrow Apple and Saudi Aramco with enough work and innovative goods.
Tesla shares performed well in 2023, but the company bulls believe the firm is undervalued. Musk said on X that he remains convinced Tesla's value remains high.
BYD Overtakes Tesla in EV Production
In other EV news, Chinese EV company BYD disclosed that it made more than 3 million new energy cars in 2023, more than Tesla made for the second year in a row, CNBC reported.
In 2023, Tesla said it would make 1.84 million cars. BYD, on the other hand, makes both hybrid and fully electric cars. But Tesla was the leader in making batteries alone, which made up 15% of its sales in the quarter that finished on September 30.
Despite BYD's slightly missed expectations, the company sold 3.02 million new energy vehicles in 2023, discontinuing the production of purely gasoline and diesel-powered cars in March 2022.
The robust electric vehicle market in China continues to attract attention, with various companies, including smartphone maker Xiaomi, entering the space to compete with established players like Tesla and BYD.
Related Article: Chinese Tech Giants Xiaomi, Huawei Step Into Electric Vehicle Arena
