Tesla just published its fourth quarter 2022 car production and delivery report.
Here are the key figures.
Total deliveries Q4 2022: 405,278
Total production Q4 2022: 439,701
Total annual deliveries 2022: 1.31 million
Total annual production 2022: 1.37 million
Deliveries are the closest approximation of sales reported by Tesla. These numbers represented a new record for the Elon Musk-led automaker and a 40% growth in deliveries from year to year.
However, the figures for the fourth quarter fell short of analysts’ expectations.
According to a consensus of analysts̵[ads1]7; estimates compiled by FactSet, as of Dec. 31, 2022, Wall Street expected Tesla to report deliveries around 427,000 for the year’s final quarter. Estimates updated in December, and included in the FactSet consensus, ranged from 409,000 to 433,000.
These newer estimates were in line with a company-compiled consensus distributed by Tesla investor relations vice president Martin Viecha. The consensus, published by researcher in the electric car industry @TroyTeslikesaid 24 sell-side analysts were expecting Tesla deliveries of about 417,957 on average for the quarter (and about 1.33 million deliveries for the full year).
Tesla started production at two new factories this year – in Austin, Texas and Brandenburg, Germany – and increased production in Fremont, California and in Shanghai, but it does not disclose production and delivery figures by region.
In the fourth quarter of 2022, Tesla said deliveries of the Model 3 sedan and Model Y crossover totaled 325,158, while deliveries of the high-end Model S sedan and Model X SUV totaled 18,672.
In its third-quarter shareholder presentation, Tesla wrote: “Over a multi-year horizon, we expect to achieve 50% average annual growth in vehicle deliveries. The rate of growth will depend on our equipment capacity, factory uptime, operational efficiency and the capacity and stability of our supply chain.”
The period ending December 31, 2022 was characterized by challenges for Tesla, including the Covid outbreak in China, which led to the company temporarily suspending and reducing production at the factory in Shanghai.
During the fourth quarter, Tesla also offered steep price cuts and other promotions in the U.S., China and elsewhere to stimulate demand, although that could put pressure on margins.
In a recent email to Tesla employees, Elon Musk asked employees to “volunteer” to deliver as many cars as possible to customers before the end of 2022. In his email, Musk also urged employees not to be ” tormented’ by what he characterized as ‘stock market madness’.
Shares of Tesla fell by more than 45% in the last six months.
In December, several analysts expressed concern about weakening demand for Tesla electric cars, which are relatively expensive compared to a growing number of hybrid and all-electric products from competitors.
Along with competitors ranging from industry veterans Ford and GM to startup Rivianis Tesla poised to reap the benefits of Biden’s inflation-reduction bill this year, which includes incentives for domestic production and purchases of all-electric cars.
Retail shareholders and analysts alike attributed some of Tesla’s falling share price in 2022 to a so-called “Twitter overhang.”
Musk sold billions of dollars worth of Tesla stock last year to finance a leveraged buyout of social media business Twitter. This agreement was concluded at the end of October. Musk appointed himself CEO of Twitter and has sparked controversy by making sweeping changes to the company and its social media platform.
Shares in Tesla began to rise again in the final days of December 2022, in anticipation of record deliveries in the fourth quarter and for the full year.