Tesla released its fourth quarter vehicle production and delivery report for 2022.
Here is the key number.
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
The shipment is the closest sales estimate Tesla has disclosed. The number is a new record for the Elon Musk-led carmaker and a growth of 40% in year-over-year delivery.
However, the fourth quarter numbers fell short of analysts’ expectations.
According to a consensus of analyst estimates compiled by FactSet, as of December 31, 2022, Wall Street expects Tesla to report deliveries of around 427,000 for the final quarter of the year. Estimates updated in December, and included in the FactSet consensus, ranged from 409,000 to 433,000.
These more recent estimates are in line with the company’s consensus compiled by Tesla Vice President of Investor Relations Martin Viecha. That’s the consensus, published by electric vehicle industry researchers @TroyTeslike, said there are 24 sell-sides expected Tesla deliveries to average 417,957 for the quarter (and around 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 did not disclose production and delivery numbers by region.
In the fourth quarter of 2022, Tesla said deliveries of the entry-level Model 3 sedan and Model Y crossover totaled 388,131, while deliveries of the higher-end Model S sedan and Model X SUV totaled 17,147.
In its third-quarter shareholder presentation, Tesla wrote: “Over a multi-year horizon, we expect to achieve an average annual growth of 50% in vehicle deliveries. The growth rate will depend on equipment capacity, factory uptime, operational efficiency and capacity. and supply chain stability.”
The period ending December 31, 2022 was marked by challenges for Tesla, including the Covid outbreak in China, which caused the company to suspend and reduce production at its Shanghai factory.
During the fourth quarter, Tesla also offered steep price cuts and other promotions in the U.S., China and elsewhere to spur demand, though doing so could put pressure on margins.
In a new e-mail to Tesla staff, Elon Musk asked employees to “volunteer” to deliver as many cars to customers as possible before the end of 2022. In the e-mail, Musk also encouraged employees not to be “distracted” by what he characterized as ” stock market craziness.”
Share from Tesla has fallen more than 45% in the last six months.
In December, some analysts expressed concern about declining demand for Tesla’s electric vehicles, which are expensive compared to many hybrid and full-electric products from competitors.
Along with competitors ranging from industry veterans Ford and GM for starters RivianTesla is poised to reap the benefits of this year’s Biden Inflation Reduction Act, which includes incentives for domestic production and purchases of fully electric cars.
Retail shareholders and analysts alike have attributed some of Tesla’s share price declines in 2022 to what they call a “Twitter overhang.”
Musk sold billions of dollars of his Tesla holdings last year to finance a buyout of social media business Twitter. The deal closed in late October. Musk was appointed CEO of Twitter and has created controversy by making major changes to the company and its social media platform.
Tesla shares began to rise again in the final days of December 2022, in anticipation of fourth quarter and full year deliveries.
Correction: This story has been updated to reflect the correct numbers for Model 3 and Y, and Model S and X vehicle deliveries for the fourth quarter of 2022.