Tesla reports record 405,000 vehicle deliveries in Q4, misses annual guidance

Despite losing 65% of its market value in 2022, Telsa is still the world’s most valuable automaker. In a report released by Telsa, its quarterly deliveries have set a company record but still fell short of its market expectations due to continued logistical issues and rising demand concerns. 

For all of 2022, the electric vehicle makers’ deliveries rose by 40%, just short of Musk’s estimated annual target of 50%. Here are the key numbers: 

• Total deliveries Q4 in 2022- 405,278
• Total production Q4 in 2022- 439,701 
• Total annual deliveries in 2022- 1.31 million
• Total annual production in 2022- 1.37 million

In the fourth quarter of 2022, Tesla said deliveries of its entry-level Model 3 sedan and Model Y crossover amounted to 388,131, while deliveries of its higher-end Model 3 sedan and Model X SUV amounted to 17,147. 

Given that shares of Tesla have decreased by more than 45% over the past six months, some analysts expressed concern about weakening demand for the company, whose period ended December 31, 2022. Tesla also faced a difficulty when the COVID-19 outbreak in China forced it to temporarily halt and scale back production at its Shanghai factory.

According to Bernstein analyst Toni Sacconaghi, “many investors underestimate the magnitude of the demand issues Tesla is facing.” With the gap between production and deliveries widened to 34,000 vehicles, more cars are still stuck in transit. 

Additionally, it intends to continue the decreased output it started last month by running a reduced production schedule in January.

However, after Musk sold billions of dollars worth of Tesla holdings last year to finance a takeover of Twitter, retail shareholders and analysts have linked this event to Tesla’s share decline.

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