The Tesla-Elon Musk-run company is expected to deliver more than 1.7 million vehicles in 2023, a 31 percent increase over last year, and if its recent price cuts remain in effect for the rest of the year, that goal seems achievable. It is expected that Tesla will continue to lead the market in electric vehicles due to its strong fundamentals.
Due to Tesla’s price cuts this month, demand has doubled, and it is expected that the Tesla Semi will hit the road in the near future.
Moreover, Tesla has announced a $3.6 billion investment in building a 100GW battery factory and a high-volume semi-factory. With record deliveries of 405,278 vehicles in Q4 2022, Tesla registered a record $24.3 billion in revenue, an increase of 37 percent year over year. The 2022 annual total of 1.3 million units has been delivered, up 31.3 percent YoY in Q4.
The US was the leading market in Q4 followed by China and Europe. Tesla’s annual deliveries of its premium Model X and Model S grew by 167 percent YoY to 66,000 units. Tesla’s inventory in Q4 stood at 34,423 units, bringing the total number of Tesla vehicles to 55,760 units. Higher inventory is likely the result of the Covid-19 outbreak in China and increased production in the Berlin factory.
Additionally, Tesla is facing stiff competition from legacy automakers and new players offering more affordable EVs. In January 2023, Tesla lowered prices globally, which may help clear out inventories and achieve economies of scale.”
