Tesla's Q4 2023 Vehicle Production and Delivery Highlights
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On January 2, 2024, Tesla published its fourth quarter of 2023 vehicle production and deliveries report for 2023. tesla vehicle deliveries stood at a record number of electric vehicles in the fourth quarter meeting its 2023 target. In the third-quarter earnings call in October, Tesla CEO Elon Musk expressed his expectation that the Model Y would become the top-selling car globally, leading not only in revenue but also in terms of unit volume by the end of 2023. (Source: Tesla)
Production & Deliveries Numbers for Q4 and Full Year 2023
- Q4 Total Production: 495,000 vehicles
- Q4 Total Delivered: 484,000 vehicles
- Annual FY23 Production: 1,845,985 vehicles
- Annual FY23 Deliveries: 1,808,581 vehicles
In 2022, Tesla delivered 1.31 million units and production reached 1.37 million electric vehicles. These figures signify a notable year-over-year (YoY) growth, with a 38% increase in deliveries and a 35% surge in production.
Compared to the previous year, 2022 showcased a substantial 40% growth in deliveries for the company. The full-year deliveries for Tesla reached 1.81 million vehicles in 2023, narrowly exceeding the company's target of 1.8 million vehicles for the year. (Source: Tesla)
Moreover, during the quarter quarter, Tesla manufactured 476,777 Model 3 and Model Y vehicles and recorded 461,538 deliveries for these specific models. Furthermore, production and delivery numbers for the Model S and Model X were not individually disclosed instead, they were grouped under the category "Other Models." For this segment, Tesla produced 18,212 units and delivered 22,969 vehicles during the same quarter. (Source: Tesla)
Additionally, the US EV car company did not provide specific figures for the Cybertruck, and the numbers for its Semi, the heavy-duty commercial truck produced in limited quantities at its battery plant near Reno, were not disclosed either.
During the last quarter of 2023, Tesla implemented widespread price reductions in global markets. This pricing strategy was adopted as a response to what Tesla CFO Vaibhav Taneja referred to as "a period of economic uncertainty, higher interest rates, and shifting consumer sentiment," as mentioned during the company's third-quarter earnings call.
US EV Tax Credit Rules
Starting January 1, 2024, electric vehicles using batteries with minerals and materials sourced from China will no longer qualify for the $7,500 federal EV tax credit, according to guidelines released by the Internal Revenue Service (IRS).
As a result of these guidelines, only a limited number of battery electric vehicles, along with one plug-in hybrid vehicle, will remain eligible for the full credit. Some additional vehicles may qualify for a reduced $3,750 half credit, but the options are now more limited than before.
Vehicles such as the Volkswagen ID.4, Tesla Model 3 Rear Wheel Drive, BMW X5 xDrive50e, Audi Q5 PHEV 55, Cadillac Lyriq, and Ford E-Transit are among those that have lost eligibility for tax credits as of January 1, 2024.
In December 2023, Tesla revealed that its Model 3 Rear-Wheel Drive and Long Range variants would no longer qualify for federal tax credits starting from January 1. However, the Model 3 Performance model will continue to be eligible for the $7,500 federal tax credit.
BYD Vs Tesla - Production and Delivery Results
Tesla's biggest competitor BYD sold 526,409 fully electric cars including including about 1.4 million plug-in hybrid EVs as compared to Tesla’s 484,507 vehicles in 4Q. On an annual basis in 2013 BYD manufactured over 3 million new energy vehicles, positioning the Chinese electric car giant to potentially exceed Tesla's production for the second consecutive year. (Source: Reuters)
The shift in electric vehicle (EV) sales rankings underscores China's increasing influence in the global automotive sector. Having surpassed the United States, South Korea, and Germany in recent years, China may have also overtaken Japan as the world's leading passenger-car exporter in 2023.
Apart from this, Tesla outpaces BYD in revenue and profit in the third quarter primarily due to its focus on selling higher-priced vehicles and a concentration on a select few models that dominate its sales. The Model Y, an SUV, and the Model 3 sedan constituted a significant 95% of Tesla's deliveries in the fourth quarter, contributing substantially to the company's revenue and profitability. (Source: Reuters)
BYD doesn't sell its vehicles in the US where its vehicles would face a 27.5% import tariff and other hurdles.
On Tuesday, Tesla's shares initially experienced a decline of up to 1.6%, but later in the day, they stabilized and were trading nearly unchanged at $248.43 as of 1:30 p.m. in New York. (Source: Bloomberg)
Tesla ETPs by GraniteShares
Tesla ETPs by GraniteShares
| Product name | Ticker | ||
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| USD | EUR | GBX | |
| 3LTS | 3LTE | 3LTP | |
| 3STS | 3STE | 3STP | |
| 3SFT | 3S3E | 3S3P | |
| 3FTG | 3FTE | 3FTP | |
| FTNG | FTNE | FTNP | |
| SFTG | SFTE | SFTP | |
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