Steep price cuts helped electric vehicle maker Tesla Inc. increase its fourth-quarter vehicle sales by almost 20% as EV sales growth slowed across the industry. The Austin, Texas, company said Tuesday that it sold 484,507 vehicles worldwide from October through December. That handily beat Wall Street estimates of 473,000 for the quarter according to data provider FactSet.
Quick Read
- Tesla’s Q4 Sales Increase: Tesla Inc. boosted its fourth-quarter vehicle sales by nearly 20% through significant price cuts, outperforming industry trends of slowing electric vehicle sales growth.
- Quarterly and Annual Sales Figures: In the last quarter of the year, Tesla sold 484,507 vehicles worldwide, surpassing Wall Street estimates. The company achieved over 1.8 million vehicle sales for the full year, a 37.7% increase from 2022.
- Sales Growth vs. Musk’s Prediction: Although falling short of CEO Elon Musk’s expectation of 50% annual sales growth, Tesla exceeded its internal target of 1.8 million sales for the year.
- Price Reduction Strategy: Tesla implemented multiple price reductions in the U.S. during the year, including cuts up to $20,000 on higher-end models and at least $6,600 on the Model 3.
- Impact on Profit Margins: Analysts anticipate that the price cuts may affect Tesla’s profit margins, with financial results expected to be announced on January 24.
- Maintaining Market Leadership: Tesla’s sales strategy helped it maintain its position as the world’s top seller of electric vehicles, ahead of China’s BYD, which reported a 73% increase in EV sales to 1.57 million.
- Model-wise Sales Distribution: The majority of Tesla’s sales were from the more affordable Models 3 and Y, which saw a 19% increase in deliveries. The higher-end models, including the S, X, and some Cybertrucks, experienced a 34% sales growth.
- Production vs. Delivery: Tesla produced nearly 495,000 vehicles in the quarter, slightly more than its delivery numbers.
- Tesla’s Stock Movement: Following the sales announcement, Tesla shares saw a modest increase of just over 1% in Tuesday morning trading.
The Associated Press has the story:
Price cuts boost Tesla 4Q sales, beating estimates as electric vehicle growth rate slows
Newslooks- DETROIT (AP)
Steep price cuts helped electric vehicle maker Tesla Inc. increase its fourth-quarter vehicle sales by almost 20% as EV sales growth slowed across the industry.
The Austin, Texas, company said Tuesday that it sold 484,507 vehicles worldwide from October through December. That handily beat Wall Street estimates of 473,000 for the quarter according to data provider FactSet.
For the full year, Tesla said it sold just over 1.8 million vehicles, up 37.7% from 2022 numbers.
Full-year sales numbers fell far short of CEO Elon Musk’s prediction of 50% sales growth in most years. But the company did exceed an internal target for the year of 1.8 million vehicle sales.
Tesla chopped prices in the U.S. multiple times during the year, at times by $20,000 on some of its higher-priced models. Even its lowest-price model, the rear-wheel-drive 3, saw a cut of at least $6,600. Industry analysts expect the price cuts to trim Tesla’s profit margins when it reports earnings on Jan. 24 after the markets close.
The increase helped Tesla hold off Chinese powerhouse BYD to keep the title of the world’s top seller of electric vehicles. Fast-growing BYD reported a 73% EV sales increase for last year to 1.57 million.
As usual, the bulk of Tesla’s sales were its lower-priced Models 3 and Y, with deliveries of 461,538 globally in the fourth quarter. That was up 19% from a year ago. Sales of its other models, mainly the S and X with some new Cybertrucks, grew 34% to 22,969. The company didn’t break out sales for individual models.
The company produced nearly 495,000 vehicles for the quarter, about 10,000 more than it delivered.
Tesla shares rose just over 1% in Tuesday morning trading after the sales numbers were announced.
