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Tesla's Strong Q4 Delivery Performance Driven by Model 3 and Model Y

AInvestTuesday, Jan 2, 2024 10:01 am ET
1min read

$TSLA(TSLA)

Tesla (TSLA), the renowned electric vehicle (EV) manufacturer, has reported strong fourth-quarter delivery numbers, exceeding market estimates and showcasing 38% growth compared to the previous year. The companys performance was primarily driven by the robust demand for its Model 3 and Model Y vehicles.

Tesla reported delivering 484,507 vehicles in the fourth quarter, slightly surpassing the estimated 483,173 deliveries. The companys quarterly production reached 495,000 vehicles. The Model 3 and Model Y vehicles accounted for 461,538 deliveries, reinforcing their significance in Teslas overall performance. Tesla did not provide specific breakdowns for Model S, Model X, and Cybertruck deliveries, which has raised concerns about transparency among investors and industry experts. 

Despite facing challenges in the automotive space due to high-interest rates, Tesla displayed remarkable growth in both deliveries and production throughout 2023. With annual deliveries reaching 1.81 million and production reaching 1.85 million, the company achieved year-over-year growth rates of 38% and 35%, respectively. This impressive performance indicates Teslas ability to outpace other car manufacturers globally. However, during the last earnings call, CEO Elon Musk emphasized that sustained 50% compound growth is not feasible in the long term.While Teslas strong Q4 performance is commendable, some stakeholders express disappointment regarding the companys lack of transparency in its delivery data. By merging the figures of Model S, Model X, and Cybertruck sales under other models, Tesla has deviated from the industry norm. This approach has drawn criticism, with stakeholders urging Tesla to enhance data transparency and provide a clearer breakdown of its vehicle programs.

Shares of TSLA slipped from $250 to the $245 area following the news. Tech has been under pressure to kick off the year and we would attribute the decline in TSLA shares to the broader sell-off rather than in reaction to the delivery news. The stock has been able to hold that level and has worked its way back to $250 despite some of the market weakness. The 20-sma ($247) factors in to the support and remains a key level for investors to track. 

Teslas fourth-quarter performance showcases the companys ability to maintain growth momentum, even during a challenging period in the automotive industry. With deliveries exceeding estimates and marked growth in both production and deliveries year over year, Tesla has demonstrated its position as a dominant force in the EV market. The success of the Model 3 and Model Y models solidifies Teslas competitive advantage in the affordable EV segment. However, concerns persist around Teslas transparency in delivery data, suggesting the need for greater clarity and disclosure. Investors and market participants should closely monitor Teslas upcoming earnings call on January 24, 2024, for additional insights into the prospects of the company.

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