Skip to content
Bull Bear Daily

Bull Bear Daily

Primary Menu
  • Home
  • Business
  • Domestic
  • Economy
  • Money
  • Politics
  • Top News
  • Newsletters
  • Home
  • 2023
  • December
  • 27
  • Tesla deliveries to hit record, but fall short of Musk’s aspirations
  • Business

Tesla deliveries to hit record, but fall short of Musk’s aspirations

Bull Bear Daily December 27, 2023
Man walks by Tesla Model 3 sedans and Tesla Model

Man walks by Tesla Model 3 sedans and Tesla Model X sport utility vehicle at a new Tesla showroom in Shanghai

By Akash Sriram and Hyunjoo Jin

SAN FRANCISCO (Reuters) -Tesla is expected to post another record quarter for electric vehicle (EV) deliveries, likely shy of an ambitious 2 million annual internal target that CEO Elon Musk touted at the beginning of the year.

Faced with slowing sales, Tesla leveraged its industry-leading margins and slashed prices of its four car models globally in 2023, with a focus on China, where the company has lost market share to locals including BYD.

The price war and slowing EV demand, however, have prompted automakers including Ford Motor to pull back on their electrification plans, leaving Tesla as the undisputed leader in the United States and helping its stock more than double this year.

“The fourth quarter is typically the strongest of the year in terms of deliveries for Tesla, we’re expecting that to be the case again this year,” said Garrett Nelson, senior analyst at CFRA Research.

Tesla likely delivered 1.82 million vehicles globally in 2023, up 37% from 2022, with about 473,000 units in the fourth quarter, according to 14 analysts polled by LSEG. The EV maker is expected to report quarterly deliveries and production as early as Tuesday.

In January, Musk said that Tesla has the potential to achieve 2 million deliveries this year, if there was no “freaking force majeure”. But as recently as October, he warned that higher borrowing costs were pressuring demand.

The company, which made a year-end sales push by increasing discounts on its key models, has said it aims to achieve a 50% average annual growth rate over multiple years.

Going into 2024, the EV market leader will have to contend with the loss of federal tax credits for some of its cars in the United States as well as in Germany, where the government is prematurely ending its EV subsidy program.

This may force more price cuts next year even though interest rates and battery ingredient costs are expected to ease.

Jairam Nathan, an analyst at Daiwa Capital Markets, trimmed his estimate for Tesla’s deliveries next year to 2.04 million from 2.14 million and said he was modeling for a 4% decline in average revenue per car from 2023.

2024 CHALLENGES

The company is also dealing with a rise in regulatory scrutiny of its self-driving systems and other parts in the United States and in some European countries. Earlier this month, Tesla recalled nearly all of its 2 million vehicles on U.S. roads to install new safeguards.

Musk has previously said he believes full self-driving (FSD) could one day account for most of Tesla’s value.

Analysts polled by Visible Alpha expect 2.2 million deliveries by Tesla next year. Most believe that the newly released Cybertruck and a refreshed Model 3 are not enough to boost demand.

“Tesla candidly admitted the company is now in an intermediate low-growth period,” Deutsche Bank analyst Emmanuel Rosner wrote in a note, citing a meeting with Investor Relations Chief Martin Viecha.

Investors expect Tesla’s margins to remain pressured as the company ramps Cybertruck production and prepares to launch a cheaper car platform.

Musk has said Cybertrucks will be a small percentage of the vehicles Tesla makes next year and that there are “enormous challenges” in reaching volume production for the pickup, whose controversial design has divided fans.

Tom Narayan, an analyst at RBC Capital Markets, said in a report that Cybertruck would represent 3% of Tesla’s volumes in 2024, calling it more of a “halo” product that could attract consumers to the brand.

(Reporting by Akash Sriram in Bengaluru and Hyunjoo Jin in San Francisco; Editing by Sayantani Ghosh and Devika Syamnath)

tagreuters.com2023binary_LYNXMPEJBQ07E-VIEWIMAGE

About the Author

Bull Bear Daily

Administrator

Author's website Author's posts

Continue Reading

Previous: US buys 3 million barrels of oil for strategic reserve
Next: Apple can temporarily sell smartwatches after US appeals court win

Related Stories

2025-05-30T113223Z_1_LYNXNPEL4T0IZ_RTROPTP_4_SPAIN-BUSINESS.JPG
  • Business

Zara founder Ortega buys Barcelona office building for $283 million, sources say

Bull Bear Daily July 16, 2025
2025-07-16T152537Z_1_LYNXMPEL6F0RB_RTROPTP_4_OPENAI-ANI-LAWSUIT
  • Business

OpenAI working on payment checkout system within ChatGPT, FT reports

Bull Bear Daily July 16, 2025
2025-07-16T161335Z_1_LYNXMPEL6F0TH_RTROPTP_4_VERIZON-CLOSURES
  • Business

US FAA not considering replacing L3Harris, Verizon contracts with Musk’s Starlink

Bull Bear Daily July 16, 2025

Live Market Pulse

The charting technology is provided by TradingView. Learn how to use theTradingView Stock Screener.

Recent Posts

  • German labour office fears 12-billion-euro shortfall by 2029 amid rising unemployment
  • Tax bill contains ‘sledgehammer’ for Trump to retaliate against foreign digital taxes
  • US inflation tepid in April, consumer spending slows
  • test
  • Zara founder Ortega buys Barcelona office building for $283 million, sources say

You may have missed

2025-05-30T111538Z_1_LYNXNPEL4T0I3_RTROPTP_4_GLOBAL-UNEMPLOYMENT.JPG
  • Economy

German labour office fears 12-billion-euro shortfall by 2029 amid rising unemployment

Bull Bear Daily July 16, 2025

Tax bill contains ‘sledgehammer’ for Trump to retaliate against foreign digital taxes

Bull Bear Daily July 16, 2025

US inflation tepid in April, consumer spending slows

Bull Bear Daily July 16, 2025
  • Newsletters

test

Bull Bear Daily July 16, 2025
  • Home
  • Privacy Policy
  • Terms of Service
  • Disclaimer
  • Contact Us
Copyright 2025 © All rights reserved | Bull Bear Daily | bullbeardaily.com