Tesla vehicle deliveries are forecasted to exceed 1.7 million units in 2023. The numbers show a 31 per cent YoY growth. Reports suggest that Elon Musk-run company can attain it if the company maintains its recent price cuts effective for the most part of the year.
Recently, the electric car maker announced dramatic price cuts to improve the affordability of its electric vehicles, slashing prices for certain models up to 20 per cent. The move has resulted in demand blowing up to twice the production, according to Counteresearch.
In 2022, the company has also begun the pilot production of the Tesla Semi, which is expected to hit the road soon. Tesla recently announced to invest over $3.6 billion in its Gigafactory in Nevada. The company will also add 3,000 new employees to the facility.
However, the company’s CEO said at its fourth-quarter earnings call that full-volume production of the much-awaited Cybertruck will not start before 2024. Tesla’s electric truck was unveiled in 2019 and has seen production delays several times since then.
Tesla also recorded an increase of 37 per cent YoY in 2022 with a record total revenue of $24.3 billion during Q4 2022 after completing 405,278 vehicle deliveries. The number of deliveries rose to 31.3 per cent YoY in Q4, bringing last year’s annual total to 1.3 million units. The US emerged as the leading market for the company in Q4, followed by China and Europe. Furthermore, annual deliveries of Model X and Model S grew 167 percent YoY to reach 66,000 units.
“In addition, Tesla is facing stiff competition as legacy automakers and new players are offering more affordable EVs. In January 2023, Tesla lowered prices globally, which may help in clearing out inventories and achieving economies of scale,” said the report.