Tesla Falls Short of 2023 Electric Vehicles Supply Target

Tesla (TSLA.O) is expected to post another record quarter for electric vehicle (EV) deliveries, likely shy of an ambitious 2 million annual internal target that CEO, Elon Musk touted at the beginning of the year.

Faced with slowing sales, Tesla leveraged its industry-leading margins and slashed prices of its four car models globally in 2023, with a focus on China, where the company has lost market share to locals including BYD (002594.SZ).

The price war and slowing EV demand, however, have prompted automakers including Ford Motor (F.N) to pull back on their electrification plans, leaving Tesla as the undisputed leader in the United States and helping its stock more than double this year.

According to reports, Tesla likely delivered 1.82 million vehicles globally in 2023, up 37% from 2022, with about 473,000 units in the fourth quarter.

The EV maker is expected to report quarterly deliveries and production as early as Tuesday.

In January, Musk said that Tesla has the potential to achieve 2 million deliveries this year, if there was no “freaking force majeure”.

But as recently as October, he lamented that higher borrowing costs were pressuring demand.

Reuters/Hauwa Abu