Tesla announced on Sunday that it had delivered 422,875 electric vehicles in the first quarter of 2023. The company produced 440,808 vehicles during the same period.
Record-breaking delivery record for an EV manufacturer. In the fourth quarter of 2022, Tesla delivered 405,278 of his vehicles and produced 439,701. These fourth-quarter deliveries were also record results, but failed Wall Street expectations.
Most of the deliveries were for vehicles produced at Tesla’s Shanghai Gigafactory. Automakers are announcing price cuts in all markets, including China, where the latest discounts sparked a price war among competitors. As a result, Tesla sales in China have increased since last year, suggesting the East Asian country is contributing to Tesla’s growing number of global deliveries.
Tesla doesn’t break down deliveries and production numbers by region, but according to data from the China Passenger Car Association (CPCA), Tesla sold a total of 140,453 Chinese-made cars in January and February. The CPCA has yet to release his March data. If Tesla’s March deliveries in China match his February numbers, that means more than 50% of his first-quarter deliveries (or nearly 215,000) came from Shanghai. increase.
Tesla’s Q1 2023 deliveries and production numbers. Image credit: Tesla via screenshot
Tesla started cutting EV prices in China in October. Most recently, Tesla slashed Model 3 and Model Y prices by 6% to 13.5% in January, igniting a domestic price war. His rivals Xpeng and Nio, as well as international brands like Volkswagen and Mercedes-Benz, have also cut prices to compete with Tesla vehicles that are up to 14% cheaper than last year. In some cases, it’s almost 50% cheaper than in the US and Europe.
Automakers have echoed similar price cuts in Europe, Mexico and the US over the past few months. This year, Tesla has slashed Model Y and Model 3 prices in the U.S. by up to 20%, and Model X and Model S prices by up to 9%. Last week, Tesla also relaunched its European referral program to boost sales by the end of the quarter.
Tesla shares rose 6.24% on Sunday (after hours) after the automaker’s quarterly production and delivery results.
Tesla needed a strong result after the past few months of trading volatility. At the end of 2022, Tesla shares plummeted as CEO Elon Musk revamped his Twitter. Investors believe Tesla’s many discounts across the market last year, including a $7,500 discount for U.S. buyers who received deliveries by the end of the year, may indicate low demand from customers. I was also worried about something.
During Tesla’s fourth-quarter 2022 earnings call in January, Musk tried to convince investors that demand was actually outstripping production. At the time, Tesla acknowledged that falling prices and the general inflationary environment could affect its near-term automotive margins, but said the company is more focused on operating margins. Stated.
When Tesla reports its first-quarter earnings on Wednesday, April 19, we’ll learn more about how the global price slump has affected the business as a whole. Annual growth rate of about 1.8 million units per year.
