Tesla.Inc. is a company which engages in the design, development, manufacture, and sales of fully electric vehicles, as well as power storage and photovoltaic systems. It is ranked the 8th most valuable company in the world by market cap at over $830B. The company is scheduled to release its Q3 2023 earnings result on 18th October (Wednesday), after market close.
In Q3 2023, Tesla reported total vehicle production at 430,488, up 18% compared to the same period last year. On the other hand, total deliveries hit 435,059, up 27% from the same period last year. Model 3/Y reported production and deliveries up +20% (y/y) and +29% (y/y), to 416,800 and 419,074, while Model S/X reported production and deliveries down -31% (y/y) and -14% (y/y) to 13,688 (the lowest level since Q4 2021) and 15,985. Year-to-date, Tesla has produced over 1.35 million (+45% y/y) electric cars worldwide and delivered over 1.32 million (+46% y/y) electric cars.
The declining production and deliveries compared to the previous quarter come as no surprise as the company has signaled that there will be temporary shutdowns in some of its factories for the purpose of internal upgrades. Nevertheless, the management maintains its volume target around 1.8 million for 2023, highlighting its confidence in its capability to attain the goal (nearly 476,000 cars need to be delivered in Q4 to meet the requirement).
Tesla remains the undisputed leader in EV sales for the quarter, surpassing the industry’s overall growth rate (16.3%). In fact, EV sales in the US market have spurred continuous linear growth following downward pricing pressure, more product availability, and higher inventory levels, as well as growing consumer acceptance towards the EV market. According to Cox Automotive, total sales of EV in the US has hit over 300,000, for the first time ever. Three years ago, in 2020, it had just passed 250,000. Year-to-date, total EV sales reached over 873,000. This has sparked market optimism that EV sales are likely to hit the 1 million milestone by the end of this year.
