Tesla will announce a record number of vehicle deliveries – El Financiero
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On Tuesday, January 2, Tesla is expected to say it had another record year of deliveries in 2023, thanks in large part to diehard Elon Musk fans and tech-savvy early adopters. The company is now working to expand its appeal..
According to analysts surveyed by the publication Bloomberg. This means Tesla has likely exceeded its delivery target 1.8 million cars last yearwhich is a record for the company, but only a fraction of what Toyota Motor or General Motors typically sell.
In Tesla’s next phase of growth, it needs to attract loyal customers who primarily choose cars based on price and ease of use. “When we look at car buying in general, we are trying to reach the next group of electric vehicle usersCFO Vaibhav Taneja said during a call with investors in October.
The Musk-led company faces a number of obstacles in reaching this audience, with inflation and high interest rates holding it back consumers will be more careful when making large purchases. In addition, many buyers still wonder about safety and a sufficient number of charging stations. Those who decide to give up gasoline cars have a growing number of electric vehicles to choose from in addition to Tesla.
Some Tesla models are expected to lose the full $7,500 federal electric vehicle tax credit on Jan. 1 due to tighter regulations on sourcing battery components from China. The company website says that this will affect some versions of Model 3..
Tesla has taken some steps to enter the mass market in 2023. The company has cut prices across its entire line, sacrificing profits in exchange for volume. The discounts have been particularly noticeable in China, a market that Musk says is the hardest to compete in.
However, the electric vehicle maker will likely continue to be overtaken by China’s BYD, which has a much newer lineup. Tesla’s newest car, the futuristic Cybertruck, has not yet reached production volumes and is still at least a year away from becoming profitableMusk announced this in October. Analysts estimate the automaker likely delivered between 200 and 5,000 Cybertrucks in the quarter.
Tesla has not yet given a forecast for how many vehicles it plans to deliver in 2024. The two models that accounted for about 97 percent of the company’s deliveries this year (the Model 3 sedan and the Model Y SUV) They were first released in 2017 and 2020..
“We are struggling to understand how underlying demand can improve significantly given the older product line and without a gradual reduction in price, against the backdrop of growing competition in the electric vehicle space,” Toni Sacconaghi, a Bernstein analyst who has a sell rating on Tesla shares, wrote in a note to clients this week. “And just as importantly, we don’t see the situation improving in 2025.”
Tesla has some levers it can use to increase sales in the future. The company updated its Model 3 sedan this year, giving it a sleeker look and longer range. The car was first offered in China and then sold in Europe.The new Model 3 is expected to arrive in the United States in 2024, although Tesla has not confirmed the timing. Additionally, the company is reportedly planning to launch a new version of the Model Y at its Shanghai plant.
Tesla is also expanding its marketing efforts. You’ve built a powerful brand without paying for traditional advertising., but recently started experimenting with Google Ads. One of the existing ones advertises the possibility of leasing a Model Y for $399 per month.
Owuraka Koni, CEO of Jennison Associates, which owns a stake in Tesla, said he believes The electric vehicle maker is doing a lot to reach the next level.potential clients.
The Cybertruck attracts curious buyers to Tesla showrooms. Additionally, he said Tesla executives, including Musk, design chief Franz von Holzhausen and Lars Moravi, vice president of vehicle engineering, they speak more on behalf of the company in the market Tesla products.
“If you look at global electric vehicle sales, BYD and Tesla are still at the top. major players driving volume– said Koni. “Tesla will continue to be well positioned going forward.”