Daily Management Review

Tesla Makes Record Quarterly Deliveries But Falls Short Of Expectations


Tesla Makes Record Quarterly Deliveries But Falls Short Of Expectations
Tesla Inc reported record fourth-quarter production and deliveries, but it fell short of Wall Street expectations due to logistics issues, slowing demand, rising interest rates, and recession fears.
According to Refinitiv data, the world's most valuable automaker delivered 405,278 vehicles in the final three months of the year, compared to Wall Street expectations of 431,117 vehicles.
In the same period last year, the company delivered 308,600 vehicles.
Tesla delivered 388,131 Model 3 compact sedans and Model Y SUVs, compared to 17,147 Model X and Model S luxury cars.
Tesla produced 439,701 vehicles in the fourth quarter.
As logistical bottlenecks persisted – an issue CEO Elon Musk stated in October he was working to resolve – Tesla's fourth-quarter deliveries fell approximately 34,000 vehicles short of production.
Delivering fewer cars than it produces has been unusual for the automaker, which has typically delivered more or similar numbers to the vehicles produced in previous quarters.
Analysts have cited demand weakness in China's top auto market, as well as stiff competition from legacy automakers such as Ford Motor Co, General Motors Co, and startups such as Rivian Automotive and Lucid Group, as other headwinds for Tesla.
According to a Reuters report based on an internal schedule, Tesla plans to run a reduced production schedule in January at its Shanghai plant, extending the reduced output that began this month into next year.
Tesla's stock fell 65% in 2022, its worst year since going public in 2010. It did not trade on Monday due to a New Year's holiday. Analysts and retail shareholders were concerned that demand issues caused by an uncertain economy would derail the company's goal of increasing deliveries by 50% per year.
"This was a disappointing delivery number and the bulls will not be happy," said Wedbush Securities analyst Daniel Ives.
In a separate statement, Tesla said it will hold its Investor Day on March 1 and will livestream the event from its Gigafactory in Texas, where it will discuss long-term expansion and capital allocation plans.
On Investor Day, the automaker also hinted at a "generation 3" platform to show its investors. Musk stated in October that Tesla was developing a "next-generation vehicle" that would be less expensive and smaller than the Model 3 and Model Y vehicles.