Tesla sets a record in Q4 deliveries, outpacing estimates but faces growing competition from China’s BYD Co.
Tesla Inc., led by Elon Musk, set a new delivery record in the fourth quarter of 2023, successfully meeting its annual delivery target. This achievement comes as a relief to investors, particularly after a miss in the third quarter, amidst intensifying global competition in the electric vehicle (EV) market.
Tesla’s Q4 Performance: Surpassing Estimates
In the fourth quarter, Tesla reported delivering 484,507 vehicles, beating the average estimate of 483,173 as compiled by Bloomberg. This figure marks an all-time high for the company, surpassing its previous record of 466,000 units in the second quarter of the previous year.
Production Highlights and Model Breakdown
From a production standpoint, Tesla manufactured 494,989 vehicles, exceeding Bloomberg’s estimates of 482,336. The company produced 476,777 units of its high-volume Model 3 and Model Y EVs, topping the expected 468,680. However, Tesla did not provide separate sales figures for the Model X, Model S, or Cybertruck, categorizing them under “other models.”
Annual Growth and Market Challenges
Throughout 2023, Tesla reported a 38% year-over-year growth in vehicle deliveries, totaling 1.81 million, and a 35% increase in production to 1.85 million. Despite falling short of its 50% compound annual growth rate target, Tesla had previously indicated challenges in achieving this due to factory shutdowns and improvements in Q3.
Global Competition and Future Outlook
Tesla is facing stiff competition in China and globally. In Q4, China’s BYD Co. outperformed Tesla by delivering 526,409 pure EVs, taking the lead for the first time. While Tesla delivered more EVs in 2023, BYD’s expanding market presence in China and Europe suggests that it might soon overtake Tesla’s lead.
Closing Remarks: A Strong Finish for Tesla
Despite the increasing competition, Tesla’s latest delivery numbers represent a significant triumph, concluding a year where EV market expectations experienced some downturns. As noted by Wedbush analyst Dan Ives, achieving 1.8 million vehicles in 2023 is a notable accomplishment for Tesla in a challenging economic environment for EVs.
