Tesla’s Shares May Be Falling, But They Delivered a Record 1.3 Million Vehicles in 2022

Tesla delivered a record 1.3 million vehicles last year, an increase of 40 percent compared to 2021, according to their recent announcement.

Interestingly, these figures come after the company delivered over 405 thousand vehicles in the last three months of 2022. However, this number is slightly lower than Wall Street’s forecast of around 430 thousand deliveries for that period. The automotive industry is expected to face reduced demand this year as potential buyers are less willing to spend due to rising interest rates and recession concerns.

In a statement to investors, Tesla said they had to deal with ‘significant challenges related to Covid-19 and the supply chain throughout (last) year.’ Meanwhile, authorities in South Korea recently announced they would fine Tesla $2.2 million for failing to inform its customers about the shorter driving range of its electric vehicles in low temperatures.

The Korean Fair Trade Commission stated that the company exaggerated ‘the driving ranges of its cars on a single charge, their fuel efficiency compared to gasoline vehicles, as well as the performance of its superchargers,’ reports the BBC.

Highlighting the logistics issues faced by the world’s largest car manufacturer, deliveries in the fourth quarter of the year were about 34 thousand less than what Tesla produced. This shortfall is unusual for Tesla, as it had previously managed to deliver approximately as many vehicles as it produced.

In October, CEO Elon Musk stated that he was working to resolve this issue.

Shares Fell by 65 Percent

Like other car manufacturers, Tesla faces the challenge of potential demand slowdown for vehicles in the coming year as customers grapple with rising borrowing costs and concerns about an economic slowdown. Tesla also faces competition from traditional engine manufacturing giants like Ford and General Motors, as well as newer market entrants like Rivian and Lucid in the U.S. and Chinese brands BYD and Nio.

The company is expected to announce its financial results for the fourth quarter of 2022 and the entire year on January 25. In a separate statement, they said they plan to hold their ‘Investor Day’ on March 1 and will livestream the event from their Gigafactory in Texas.

– Our investors will be able to see our most advanced production line, as well as discuss long-term expansion plans, the Generation 3 platform, capital allocation, and other topics with our leadership team – the company stated.

Tesla’s shares fell by 65 percent in 2022, marking the worst year since its IPO in 2010, as investors were concerned about production disruptions, slowing demand, and Musk’s focus on Twitter.

It is worth noting that the multimillionaire purchased the social platform at the end of October for $44 billion (£36.4 billion) and has since spent much time trying to turn around a business that continues to lose money.