Tesla reports record deliveries but failed to meet Wall St.’s expectations

• Tesla reported record production and deliveries for the fourth quarter.
• It failed Wall Street’s expectations due to slower demand.
• Tesla’s fourth-quarter deliveries fell approximately 34,000 vehicles short of production.

Tesla Inc (TSLA.O) reported record production and deliveries of electric vehicles for the fourth quarter on Monday, but it failed Wall Street’s expectations due to logistics issues, slower demand, rising interest rates, and worries of a recession.

According to Refinitiv data, the most valuable carmaker in the world delivered 405,278 vehicles in the last three months of the year, compared to Wall Street projections of 431,117 vehicles.

A year before, the business supplied 308,600 automobiles within the same time period.

Tesla delivered 388,131 Model 3 compact sedans and Model Y SUVs compared to 17,147 Model X and Model S luxury cars.

In total, Tesla produced 439,701 automobiles during the fourth quarter.

Tesla’s fourth quarter deliveries fell approximately 34,000 vehicles short of production, despite CEO Elon Musk’s assertion in October that he was working to fix logistical obstacles.

In the third quarter, the business delivered around 22,000 fewer units than it produced.

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It is unusual for the manufacturer to deliver fewer automobiles than it produces; in past quarters, it delivered more or a similar number of vehicles as it manufactured.

Analysts have noted demand difficulties in China, the world’s largest auto market, as well as fierce competition from legacy automakers such as Ford Motor Co (F.N) and General Motors Co (GM.N) and startups such as Rivian Automotive (RIVN.O) and Lucid Group (LUCI.O) (LCID.O).

According to a report, Tesla plans to run a restricted production schedule in January at its Shanghai facility, extending the decreased output it initiated this month into next year.

Tesla’s stock, which would not trade on Monday due to the New Year’s holiday, dropped 65 percent in 2022, marking the company’s worst year since going public in 2010. Analysts and retail stockholders concerned that demand concerns arising from an unstable economy would derail the company’s goal to increase yearly shipments by 50%.

“This was a disappointing delivery number and the bulls will not be happy. Given the backdrop this was better than worse case Street fears but bulls are not popping the champagne. Lot of bad news baked in the stock but a miss is a miss,” said Wedbush Securities analyst Daniel Ives.

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