Global Courant
Tesla booked its second quarter production and delivery report of the vehicle for 2023 on Sunday.
Here are the electric vehicle manufacturer’s key numbers:
Total number of deliveries Q2 2023: 466,140
Total production Q2 2023: 479,700
The numbers beat analysts’ expectations and indicate shipments were up 83% year over year for Tesla after Elon Musk’s car company added production capacity and ramped up production at its car assembly plant in Austin, Texas.
Tesla groups deliveries into two categories, but does not report individual model or region-specific numbers.
The second quarter of 2023 marked the fifth straight period in which Tesla reported a higher level of vehicles produced compared to deliveries.
During the second quarter of last year, Tesla reported 254,695 deliveries and in the first quarter of 2023, Tesla reported 422,875 deliveries. During the second quarter of 2022, Tesla produced 258,580 vehicles and last quarter 440,808 vehicles.
Deliveries are a carefully controlled number by Tesla shareholders and are the closest to the sales announced by the company. Tesla does not divide its shipments by individual model or region.
Wall Street expected Tesla to report deliveries of 445,924 for the period ending June 30, 2023, according to analyst estimates compiled by FactSet-owned Street Account.
The independent researcher who publishes under the handle TroyTeslike expected deliveries of 448,000 and production of 471,355 vehicles.
CEO Elon Musk’s electric vehicle maker offered some rebates and other incentives to boost sales of its cars in the U.S. during the quarter, including on its Model 3 entry-level sedan, and more recently its older Model X SUV and Model S flagship sedan. which currently represent a small percentage of Tesla’s total sales.
The Model 3 and Y are now eligible for a $7,500 U.S. tax credit under the Inflation Reduction Act.
About 96% of deliveries reported by Tesla in Q2 2023 were of its entry-level Crossover Model Y and Model 3 sedan in this quarter.
Alexander E. Potter, Piper Sandler’s senior research analyst, wrote in a June 26 note that according to the company’s analysis, “prices have remained stable” for Tesla in the second quarter on balance. The company’s heavy discounts in and outside China in the first quarter led to cries of a “price war” in the electric vehicle market. Potter warned that “price cuts in the third quarter, if any, could reignite margin concerns,” for investors.
Tesla currently operates vehicle assembly plants in Fremont, California, Austin, Texas, and abroad in Shanghai and Brandenburg, Germany (outside of Berlin). The company also makes the Semi, a heavy-duty electric truck, at its battery plant in Sparks, Nevada. Deliveries of the Semi started in December 2022, but Tesla is still not producing the trucks in large numbers.
In March, Musk announced that Tesla plans to build a new factory near Monterrey, Mexico, a day’s drive from its Austin, Texas plant. After meeting with Indian Prime Minister Narendra Modi in New York in June, Musk said Tesla was also looking to invest in India “as soon as humanly possible”.
The company is expected to begin selling a partially refreshed version of the Model 3 in North America this year. At an annual shareholder meeting in May, Musk also said that Tesla will deliver its first Cybertruck pickups in 2023 and is developing a new kind of power unit and other technology that will allow it to deliver a more affordable electric car in the future.
Anticipation of newer and more affordable models could continue to depress sales, along with increased competition, especially in China.
Musk, who is also executive chairman and CTO of Twitter and CEO of SpaceX, wrote in a tweet Ahead of the Q2 delivery report: “Please advise people to be wary of margin lending. Tesla has always been a high variability stock, often with no apparent rhyme or reason. We are confident in long-term value creation, but have no control over the manic-depressive nature of the stock market.”
Tesla shares closed Friday at $261.77 ahead of its second-quarter delivery report. The company said, in a statementwill publish second quarter financial results after market close on Wednesday, July 19, 2023.
— CNBC’s Ashley Capoot contributed reporting.
