Tesla Deliveries Fall Short of Production
By The Headlines, April 3, 2023 | 02:52 PM
Tesla's sales had a marginal 4% growth in the first quarter compared to the fourth quarter of last year, despite their reduced prices on lower-priced vehicles and Elon Musk's claims concerning robust demand.
Tesla has now produced more vehicles than they have delivered to customers in the last four quarters, beginning with the first quarter. The surge in production at two new factories - one in Texas and the other in Germany - that opened last spring could be a factor behind the increased sales. However, there may be a delay between the ramped-up production and resulting sales.
It's reported that the shipment of their pricier vehicles, namely Model S and Model X, had risen significantly in the regions of Europe, the Middle East & Africa as well as the Asia Pacific.
Tesla's production of 78,000 cars beyond its sales figures over the last 12 months indicates that there may be discrepancies between their claims of strong demand and reality.
The company reported it sold 422,875 vehicles in the quarter, which is less than the expected 430,000 from Refinitiv analyst surveys. Dan Ives, a tech analyst for Wedbush Securities believes the Wall Street consensus is 421,500 deliveries. This would mean Tesla would have a small victory if it manages to exceed that number.
Despite being an optimistic investor in Tesla, Ives has stated that the lower prices for cars will result in narrower profit margins. Tesla Inc. is expected to release its quarterly financial results for the first quarter of 2021 on April 19th.
He noted in a client note on Sunday that cutting prices would affect profit margins. Despite its efforts to increase output in Germany and Texas, the company's first-quarter production was only 0.2% higher than the fourth quarter of 2022.
Tesla grew significantly compared to the 1st quarter of 2022, with production up 44% and deliveries increasing by 36%. Nonetheless, these figures are under the 50% annual growth target the company has set for itself.
Tesla's (TSLA) stock has recovered 68% in 2023 but remains 41% lower than at the end of 2021. Despite this, its shares fell 3% on Monday following the sales report. This is after it posted its worst annual performance ever in 2022 with a 65% drop.