Tesla its second quarter posting vehicle production and delivery report for 2023 on Sunday.
Here are the key numbers from the electric vehicle maker:
Total number of deliveries in Q2 2023: 466,140
Total production in Q2 2023: 479,700
The numbers beat analyst expectations and showed that deliveries rose 83% year-on-year for Tesla after Elon Musk’s auto business added production capacity and ramped up production at the vehicle assembly plant in Austin, Texas.
Tesla groups deliveries into two categories but does not report specific quantities by model or region.
The second quarter of 2023 marks the fifth consecutive period that Tesla has reported more production than deliveries.
In the second quarter of last year, Tesla reported 254,695 deliveries, and in the first quarter of 2023, Tesla reported 422,875 deliveries. In the second quarter of 2022, Tesla produced 258,580 vehicles and 440,808 vehicles in the previous quarter.
The number of deliveries is a number carefully watched by Tesla shareholders and is the closest approximation to sales disclosed by the company. Tesla doesn’t break down deliveries by model or region.
Wall Street expects Tesla to report delivery numbers of 445,924 for the period ending June 30, 2023, according to analyst estimates compiled by FactSet-owned Street Account.
Independent researcher published under TroyTeslike was expecting delivery was 448,000 and produced 471,355 vehicles.
The electric car maker of CEO Elon Musk has offered a number of discounts and other incentives to boost sales of its cars in the US during the quarter, including the Model 3 sedan and more recently the Model 3 sedan. The older Model X SUV and the Model S. flagship sedan represent a small percentage of Tesla’s total sales now.
Models 3 and Y are now eligible for a $7,500 tax credit in the United States under the Inflation Reduction Act.
About 96% of the deliveries Tesla reported for the second quarter of 2023 were Model Y crossovers and Model 3 entry-level sedans this quarter.
Piper Sandler senior research analyst Alexander E. Potter wrote in a note on June 26, that according to the company’s analysis, “Price has stabilized” for Tesla in the second quarter on surplus. The company’s steep price cuts in and out of China in the first quarter sparked a “price war” in the electric vehicle market. Potter warned that “The price drop in the third quarter, if any, could rekindle concerns about margins” for investors.
Tesla currently operates vehicle assembly plants in Fremont, California, Austin, Texas and overseas in Shanghai and Brandenburg, Germany (outside of Berlin). The company also manufactures the Semi, a heavy-duty electric truck, at its battery factory in Sparks, Nevada. Semi deliveries begin in December 2022, but Tesla is still not making trucks in large numbers.
In March, Musk announced that Tesla plans to build a new factory near Monterrey, Mexico, a day’s drive from the factory in Austin, Texas. Afterward meet with Indian Prime Minister Narendra Modi in New York in June, Musk said Tesla is also looking to invest in India “as soon as possible”.
The company is expected to start selling a partially revamped version of the Model 3 in North America this year. At a May annual shareholder meetingMusk also said Tesla will deliver its first Cybertruck pickups in 2023 and is developing a new type of powertrain and other technology that will allow it to deliver an affordable electric vehicle. more in the future.
Anticipation of newer and more affordable models is likely to continue to put pressure on sales, along with increasing competition, especially in China.
Musk, who is also the executive chairman and CTO of Twitter and the CEO of SpaceX, wrote in a tweet ahead of the second-quarter delivery: “Please be wary of margin loans. Tesla has always been a highly volatile stock, often for no apparent reason or reason. We’re confident about it. long-term value creation, but cannot control the manic-depressive nature of the stock market.”
Tesla shares closed at $261.77 on Friday ahead of the second-quarter delivery report. The company said, in a statementit will release financial results for the second quarter after the market close on Wednesday, July 19, 2023.
— CNBC’s Ashley Capoot contributed reporting.
