Source- Interesting Engineering
In the automotive world, Tesla remains a formidable force, showcasing substantial growth in deliveries and production despite encountering various market hurdles. The electric vehicle (EV) giant, under the leadership of Elon Musk, reported impressive figures for 2022 and carried forward this momentum into 2023, although not without adjustments and controversies.
A significant milestone
In 2022, Tesla achieved remarkable milestones with 1.31 million deliveries and production numbers hitting 1.37 million electric vehicles. These figures signaled a significant surge of 38% in deliveries and 35% in production year over year. The company also saw a 40% growth in deliveries from the previous year.
However, during the last earnings call in October 2023, Tesla executives revised their full-year delivery goal to a minimum of 1.8 million, down from the initially targeted 2 million. Analysts’ estimations for the year-ending quarter had pegged Tesla’s deliveries at 477,000.
Elon Musk’s Prediction
A standout prediction from CEO Elon Musk suggested that Tesla’s Model Y entry-level SUV could potentially become the bestselling car globally, not just in terms of revenue but also in unit volume for the year. Despite this optimism, Tesla did not break down individual model delivery and production figures but reported combined numbers for Model 3, and Model Y, and categorized the rest as “Other Models.”
In the last quarter of 2023, Tesla introduced its updated Model 3 sedan, named the Highland version, in select markets. Additionally, the company commenced deliveries of its highly anticipated yet controversial Cybertruck in the United States.
Strategic Pricing and Pivot
The automotive industry witnessed Tesla’s strategic pricing adjustments worldwide throughout the quarter, a move attributed to economic uncertainty and shifting consumer sentiments, as highlighted by Company CFO, Vaibhav Taneja.
While Tesla saw soaring success, it faced challenges beyond the market landscape. Elon Musk’s contentious remarks on social media platforms like X (previously Twitter) stirred backlash, leading some customers to reconsider their association with the brand. Musk later expressed regret for his controversial posts.
Nevertheless, the Company pivoted its marketing strategy in 2023, engaging in advertising campaigns, a departure from its previous reliance on non-traditional marketing avenues like events and social media influencer collaborations.
With manufacturing hubs in the US, Shanghai, and Brandenburg, and plans for a new facility in Nuevo León, Mexico, Tesla continues to expand its global footprint. Elon Musk, in discussing the 2024 outlook for deliveries, emphasized the company’s exceptional growth while acknowledging the limitations of perpetual exponential growth.