Tesla Shatters Records With Unprecedented Q4 Deliveries in 2023

Elon Musk’s Tesla shattered estimates for its fourth-quarter deliveries in 2023, marking an electrifying end to the year. The electric vehicle company delivered a record-breaking 484,507 vehicles between the months of October and December, successfully hitting its ambitious target of 1.8 million for the year. This impressive feat was significantly buoyed by federal tax credits offered under the Inflation Reduction Act (IRA). The Tesla game plan strategically capitalized on these tax incentives, leading to a marked push to deliver more of its Model 3 electric cars before the expiry of the tax benefits on some variants of the compact sedan as the new year came into effect.

Analysts from the London Stock Exchange Group had forecasted a sales surge in the fourth quarter due to the phasing out of tax incentives, predicting a corresponding impact on 2024 deliveries. They had anticipated that Tesla would deliver 473,253 units by year-end, a figure that Tesla impressively outperformed.

However, it’s not all smooth roads ahead. Certain variants of Tesla’s popular Model 3 compact sedan — the rear-wheel drive and long-range models — will sadly not be eligible for the federal tax credits of $7,500 this year due to updated requirements on battery material sourcing under the IRA. Moreover, Tesla’s fourth-quarter deliveries were a hearty 11% higher than the third quarter, which faced production hiccups due to assembly line upgrades for the updated Model 3 mass-market sedan.

Tesla’s 2023 finale saw successful deliveries of 461,538 units of Model 3 cars and Model Y sports utility vehicles and approximately 23,000 units of its other models. The spotlight was dim on the highly anticipated Cybertruck model, whose delivery numbers are projected to be modest this year due to short-term production difficulties.

Peering ahead, Musk, in October, outlined plans to manufacture around 250,000 Cybertruck units in 2025, a vision he acknowledges comes with considerable challenges in volume production, cash flow positioning, and scaling up new technology. Despite these challenges, Tesla’s report paints a promising picture for 2024. The electric vehicle giant expects to deliver 2.2 million vehicles, a near 22% increase, albeit slower than the phenomenal 38% growth recorded in 2023.