Tesla (TSLA-US), a major American electric car manufacturer, set a new record in the delivery volume last quarter, but the delivery volume is still lower than analysts’ expectations, indicating that rising interest rates and concerns about economic slowdown have significantly curbed the demand for electric vehicles. Tesla’s annual delivery volume surged by 40%.
Tesla announced on Monday (2nd) that it delivered 405,278 vehicles in the fourth quarter of last year, setting a record for a single quarter, but the delivery volume was still lower than analysts’ original estimate of 420,760 vehicles. The annual delivery volume was 1.31 million vehicles, a 40% jump from the previous year, but the delivery volume still fell short of the 50% growth target. Annual output increased by 47% to 1.37 million units.
Tesla said it produced 439,701 electric vehicles last quarter, 34,423 more than it delivered. “Continued shift to a more balanced regional production mix,” leading to a further increase in vehicles in transit, Tesla said.
Tesla lowered the price in the Chinese market and also introduced a discount of US$7,500 in the US market. However, due to economic headwinds such as rising interest rates and inflation, as well as CEO Musk’s sudden actions after acquiring Twitter, Tesla’s stock price plummeted 37% in December last year and fell 65% for the year.
“We believe Tesla faces a major demand problem that necessitates lowering its growth target or continuing to extend global price cuts, thereby compressing margins,” Bernstein analyst Toni Sacconaghi said on Monday.
The Paper reported that after the Chinese government canceled the state subsidy policy for new energy vehicles, Tesla did not announce a price increase. Instead, it introduced a limited-time preferential policy, with a maximum reduction of RMB 10,000, which may erode profits.
In the face of economic headwinds, Tesla also offered US users a discount of $7,500 in the last few days of last year, as well as free supercharging services for up to 10,000 miles. These subsidies are also directly related to the Biden administration’s Inflation Reduction Act.