In the ever-evolving world of electric vehicles, Elon Musk-owned Tesla, Inc. (NASDAQ: TSLA) has established itself as a formidable force and continues to amaze both investors and industry analysts. The second quarter of 2023 proved to be no exception, revealing Tesla’s latest press release on “Vehicle Production & Deliveries”. The overall vehicle production soared to an impressive 479,700 units, marking an 85.5% YoY and 8.8% QoQ surge, and vehicle deliveries hit a record-breaking 466,140 units, boasting an astounding 83% YoY and 10.2% QoQ growth.
In the second quarter of 2023, Tesla surpassed the delivery expectations set by Wall Street, benefiting from significant price reductions and the implementation of federal electric vehicle tax credits by the Biden administration.
But here’s the captivating twist: while other car manufacturers might boast about their production and delivery numbers, Tesla prefers to keep the details of sales figures a closely guarded secret. This enigmatic move has intrigued analysts and investors, who eagerly look to vehicle delivery numbers like treasure hunters on a quest for hidden gems. They believe these confidential delivery figures are the key to unlocking the true extent of Tesla’s electrifying success.
Tesla’s ability to consistently outperform expectations raises the bar for the automotive industry and leaves us wondering what groundbreaking moves they will make next.
Now, let’s delve deeper into Tesla’s production and delivery data by models, as well as their pricing details, to uncover the driving forces behind the company’s remarkable success.
Model 3 and Model Y Dominate the Road
The Tesla Model X, renowned for its impressive features, is the most expensive among the lineup, starting at $98,490 in the US, £98,980 in the UK, and €113,490 in Europe.
Another noteworthy model is the Tesla Model S, introduced in 2012, with a starting price of $88,490 in the US, £91,980 in the UK, and €105,490 in Europe.
For those seeking a more affordable option, the Tesla Model Y starts at $47,490 in the US, £44,990 in the UK, and €41,990 in Europe.
Lastly, the Tesla Model 3, launched in the US in 2016, comes with a starting price of $40,240 in the US, £42,990 in the UK, and €41,990 in Europe.
When it comes to ruling the roads, Tesla’s Model 3 and Model Y steal the show and capture the hearts of EV enthusiasts worldwide. Astonishingly, these two models account for over 95% of Tesla’s total production and deliveries, reaffirming their status as crowd favourites.
In the second quarter of 2023 alone, Tesla’s global production of the economically affordable Model 3 and Model Y skyrocketed by a whopping 90% YoY and 9.2 QoQ, resulting in a staggering 460,211 units. On the other hand, the deliveries to end-customers of these sought-after models rose an impressive 87.4% YoY and 8.4% QoQ increase, culminating in a total of 446,915 vehicles hitting the roads.
The popularity of the Model 3 and Model Y exemplifies Tesla’s ability to bring cutting-edge technology and accessible electric transportation to the masses.
Combined, the production and deliveries of the Tesla Model 3 and Model Y accounted for an overwhelming 95.9% of the company’s total production and deliveries worldwide.
While the spotlight often shines on the Model 3 and Model Y, Tesla’s luxury offerings, the Model S and Model X, maintain their allure. Although their production and delivery numbers may pale in comparison, these luxurious electric vehicles continue to hold their ground.
In Q2 2023, Tesla produced 19,489 units of the Model S and Model X, representing 4.06% of the total vehicle production. Demonstrating their enduring appeal, the production of Model S and Model X increased a notable 18.8% YoY, despite a modest 0.3% QoQ increase.
In terms of deliveries, Tesla handed over 19,225 Model S and Model X vehicles to customers, making up 4.1% of total global deliveries in Q2 2023. The number of Model S and Model X deliveries saw an impressive 19% increase compared to the previous year and an astonishing 79.8% jump compared to the previous quarter. Despite their smaller quantity, the Model S and Model X remain incredibly popular among luxury EV enthusiasts.
Tesla’s commitment to delivering luxury, performance, and sustainable transportation options showcases its dedication to meeting diverse consumer needs.
In other words, Tesla manufactured and sold a significantly larger number of Model 3 and Model Y vehicles compared to its pricier Model S and Model X. The company revealed that 5% of the sales for Model 3 and Model Y, and 8% of the sales for Model S and Model X, were treated as operating leases for accounting purposes.
Now the question arises, how has Tesla been able to electrify consumers’ hearts and propel its vehicles into the mainstream with such astonishing speed?
What’s Driving Tesla’s Remarkable Car Sales
Tesla’s extraordinary success can be attributed to a combination of factors. First and foremost, their relentless pursuit of innovation has allowed them to develop cutting-edge electric vehicle technology that captivates consumers. Tesla’s ability to offer vehicles with impressive range, performance, and sleek design has attracted a loyal following.
Furthermore, Tesla’s commitment to expanding its production capabilities, such as the Shanghai Gigafactory, has played a crucial role in meeting the growing demand for its vehicles. By establishing local manufacturing facilities, Tesla has been able to streamline production and delivery processes, particularly in key markets like China.
Data from the China Passenger Car Association suggests that around half of Tesla’s deliveries were likely from its Shanghai Gigafactory. While specific sales numbers for June are not yet available, Tesla delivered 75,842 China-made electric vehicles (EVs) in April and 77,695 in May. Out of these, approximately 82,610 vehicles were delivered to mainland China during April and May combined.
Tesla’s strategy of implementing price cuts in the US, China, and other countries appears to be boosting sales. By making their vehicles more affordable and competitive, Tesla has been able to tap into a broader consumer base and appeal to a wider range of customers. However, investors are keen to see the impact of these cuts on Tesla’s profit margins. In Q1 2023, the price reductions did affect the company’s net income, resulting in a 24% YoY drop to $2.5 billion.
Government incentives and tax credits, such as the federal electric vehicle tax credit in the United States, have provided an additional boost to Tesla’s sales. In the United States, during the second quarter, Tesla’s Model 3 vehicles became eligible for the full $7,500 EV tax credit, joining its other models. By making their vehicles eligible for these incentives, Tesla has made their electric cars even more enticing and financially feasible for potential buyers.
The upcoming Q2 2023 earnings report on July 19 will shed more light on this matter, as Tesla plans to release its second-quarter financial results after the market closes that day.
Tesla’s unwavering commitment to sustainability and the vision of a cleaner future has resonated with consumers who are increasingly conscious of the environmental impact of their choices. The company’s dedication to advancing the electric vehicle industry as a whole has helped solidify its position as a leader in the market.
As Tesla continues to surpass expectations and set new standards for the automotive industry, the question remains: How will Tesla’s electrifying journey continue, and what will be the next chapter in the evolution of electric vehicles? Only time will tell as Tesla continues to lead the way in shaping the future of transportation.