Connect with us

Investor's Corner

Tesla achieved its biggest goal for 2023, even with a lackluster quarter

Credit: Andrew Lake | Tesla CyberTruck group on Facebook

Published

on

Tesla achieved its biggest goal for 2023, as it confirmed yesterday it reached the 1.8 million unit goal it had for the year, even with a lackluster quarter that slowed production and deliveries.

It proves the two million unit delivery mark it had set internally was not too far-fetched. If it had not upgraded lines at its factories in Q3, it might have eclipsed that more lofty goal.

Coming into 2023, Tesla wanted 1.8 million vehicles produced and delivered to customers. It seemed to be on track after Q1 and Q2, as the first half of the year saw over 920,500 cars produced, putting the company clear of the full-year goal by roughly 40,000 units, if things remained steady.

However, Tesla had a few tricks up its sleeves. After launching the new Model 3 “Highland” in Europe, Asia, and the Middle East in October, there was an indication there could be greater sales as the year went on. The introduction of the new Model 3 helped the company get repeat sales as some drivers looked to have the updated version of the company’s all-electric sedan. Additionally, Tesla has reported growth on a quarterly basis, but that idea went to the side in Q3, at least temporarily.

Tesla explains impact of line upgrades that caused drop in production numbers

Advertisement

Tesla said in Q2 that it would need to update lines at several factories, including Fremont and Shanghai, which are major contributors to the company’s production volume. As the company moved forward with its production goals, it knew that a slow Q3 would make Q4 one of the most challenging yet.

Q3 saw a decrease from over 479,000 produced vehicles to just over 430,000, a sizeable decrease of just under 10 percent. It presented a major challenge for Tesla moving into Q4.

As Wedbush wrote in a note yesterday to investors, Tesla had to “come out swinging” in Q4, and in order to reach the 1.8 million mark, it would have to trigger demand through a variety of means. While Cybertruck deliveries began in late November, the impact the pickup had on delivery figures was abysmal, as volume production has yet to begin, and only a few handfuls of units made their way to customers.

Instead, Tesla incentivized vehicle purchases with a variety of tried-and-true promotions. Free Supercharging and $1,000 discounts to Cybertruck reservation holders were a few that deserve recognition. Price cuts also helped the Model S and Model X regain some of the momentum they once had, as they had the best quarterly numbers in five years.

The strategies helped Tesla gain some serious momentum in terms of sales, and it had its strongest quarter yet. Just over 5,000 units away from reaching 500,000 vehicles produced for the quarter, Tesla flexed its muscles to eclipse 1.8 million. The possibility that it could have reached two million units seems more unlikely, considering it was still over 150,000 units shy, and the difference between a normal Q3 and the Q3 that Tesla delivered this year was roughly 40,000 units.

Advertisement

Tesla could have been close to 1.9 million without the slow Q3, and eclipsing its yearly goal by 100,000 units would have proved to be a huge win. Moving forward, Tesla will introduce the Model 3 Highland in the United States soon, and it also will continue to ramp up production of the Cybertruck.

Moving forward, what is a number that is realistic for Tesla to make as a production goal for 2024?

I’d love to hear from you! How many cars do you expect Tesla to deliver in 2024? If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

Advertisement
Comments

Investor's Corner

Shareholder group urges Nasdaq probe into Elon Musk’s Tesla 2025 CEO Interim Award

The SOC Investment Group represents pension funds tied to more than two million union members, many of whom hold shares in TSLA.

Published

on

Credit: xAI/X

An investment group is urging Nasdaq to investigate Tesla (NASDAQ:TSLA) over its recent $29 billion equity award for CEO Elon Musk. 

The SOC Investment Group, which represents pension funds tied to more than two million union members—many of whom hold shares in TSLA—sent a letter to the exchange citing “serious concerns” that the package sidestepped shareholder approval and violated compensation rules.

Concerns over Tesla’s 2025 CEO Interim Award

In its August 19 letter to Nasdaq enforcement chief Erik Wittman, SOC alleged that Tesla’s board improperly granted Musk a “2025 CEO Interim Award” under the company’s 2019 Equity Incentive Plan. That plan, the group noted, explicitly excluded Musk when it was approved by shareholders. SOC argued that the new equity grant effectively expanded the plan to cover Musk, a material change that should have required a shareholder vote under Nasdaq rules.

The $29 billion package was designed to replace Musk’s overturned $56 billion award from 2018, which the Delaware Chancery Court struck down, prompting Tesla to file an appeal to the Delaware Supreme Court. The interim award contains restrictions: Musk must remain in a leadership role until August 2027, and vested shares cannot be sold until 2030, as per a Yahoo Finance report.

Even so, critics such as SOC have argued that the plan does not have of performance targets, calling it a “fog-the-mirror” award. This means that “If you’re around and have enough breath left in you to fog the mirror, you get them,” stated Brian Dunn, the director of the Institute for Comprehension Studies at Cornell University.

Advertisement

SOC’s Tesla concerns beyond Elon Musk

SOC’s concerns extend beyond the mechanics of Musk’s pay. The group has long questioned the independence of Tesla’s board, opposing the reelection of directors such as Kimbal Musk and James Murdoch. It has also urged regulators to review Tesla’s governance practices, including past proposals to shrink the board. 

SOC has also joined initiatives calling for Tesla to adopt comprehensive labor rights policies, including noninterference with worker organizing and compliance with global labor standards. The investment group has also been involved in webinars and resolutions highlighting the risks related to Tesla’s approach to unions, as well as labor issues across several countries.

Tesla has not yet publicly responded to SOC’s latest letter, nor to requests for comment.

The SOC’s letter can be viewed below.

Nasdaq+Letter Tsla Socig Final by Simon Alvarez

Advertisement
Continue Reading

Investor's Corner

Tesla investors may be in for a big surprise

All signs point toward a strong quarter for Tesla in terms of deliveries. Investors could be in for a surprise.

Published

on

(Credit: Tesla)

Tesla investors have plenty of things to be ecstatic about, considering the company’s confidence in autonomy, AI, robotics, cars, and energy. However, many of them may be in for a big surprise as the end of the $7,500 EV tax credit nears. On September 30, it will be gone for good.

This has put some skepticism in the minds of some investors: the lack of a $7,500 discount for buying a clean energy vehicle may deter many people from affording Tesla’s industry-leading EVs.

Tesla warns consumers of huge, time-sensitive change coming soon

The focus on quarterly deliveries, while potentially waning in terms of importance to the future, is still a big indicator of demand, at least as of now. Of course, there are other factors, most of them economic.

The big push to make the most of the final quarter of the EV tax credit is evident, as Tesla is reminding consumers on social media platforms and through email communications that the $7,500 discount will not be here forever. It will be gone sooner rather than later.

It appears the push to maximize sales this quarter before having to assess how much they will be impacted by the tax credit’s removal is working.

Delivery Wait Time Increases

Wait times for Tesla vehicles are increasing due to what appears to be increased demand for the company’s vehicles. Recently, Model Y delivery wait times were increased from 1-3 weeks to 4-6 weeks.

This puts extra pressure on consumers to pull the trigger on an order, as delivery must be completed by the cutoff date of September 30.

Delivery wait times may have gone up due to an increase in demand as consumers push to make a purchase before losing that $7,500 discount.

More People are Ordering

A post on X by notable Tesla influencer Sawyer Merritt anecdotally shows he has been receiving more DMs than normal from people stating that they’re ordering vehicles before the end of the tax credit:

It’s not necessarily a confirmation of more orders, but it could be an indication that things are certainly looking that way.

Why Investors Could Be Surprised

Tesla investors could see some positive movement in stock price following the release of the Q3 delivery report, especially if all signs point to increased demand this quarter.

We reported previously that this could end up being a very strong rebounding quarter for Tesla, with so many people taking advantage of the tax credit.

Whether the delivery figures will be higher than normal remains to be seen. But all indications seem to point to Q3 being a very strong quarter for Tesla.

Continue Reading

Elon Musk

Tesla bear Guggenheim sees nearly 50% drop off in stock price in new note

Tesla bear Guggenheim does not see any upside in Robotaxi.

Published

on

tesla showroom
Credit: Tesla

Tesla bear Guggenheim is still among the biggest non-believers in the company’s overall mission and its devotion to solving self-driving.

In a new note to investors on Thursday, analyst Ronald Jewsikow reiterated his price target of $175, a nearly 50 percent drop off, with a ‘Sell’ rating, all based on skepticism regarding Tesla’s execution of the Robotaxi platform.

A few days ago, Tesla CEO Elon Musk said the company’s Robotaxi platform would open to the public in September, offering driverless rides to anyone in the Austin area within its geofence, which is roughly 90 square miles large.

Tesla CEO Elon Musk confirms Robotaxi is opening to the public: here’s when

However, Jewsikow’s skepticism regarding this timeline has to do with what’s going on inside of the vehicles. The analyst was willing to give props to Robotaxi, saying that Musk’s estimation of a September public launch would be a “key step” in offering the service to a broader population.

Where Jewsikow’s real issue lies is with Tesla’s lack of transparency on the Safety Monitors, and how bulls are willing to overlook their importance.

Much of this bullish mentality comes from the fact that the Monitors are not sitting in the driver’s seat, and they don’t have anything to do with the overall operation of the vehicle.

Musk also said last month that reducing Safety Monitors could come “in a month or two.”

Instead, they’re just there to make sure everything runs smoothly.

Jewsikow said:

“While safety drivers will remain, and no timeline has been provided for their removal, bulls have been willing to overlook the optics of safety drivers in TSLA vehicles, and we see no reason why that would change now.”

He also commented on Musk’s recent indication that Tesla was working on a 10x parameter count that could help make Full Self-Driving even more accurate. It could be one of the pieces to Tesla solving autonomy.

Jewsikow added:

“Perhaps most importantly for investors bullish on TSLA for the fleet of potential FSD-enabled vehicles today, the 10x higher parameter count will be able to run on the current generation of FSD hardware and inference compute.”

Elon Musk teases crazy new Tesla FSD model: here’s when it’s coming

Tesla shares are down just about 2 percent today, trading at $332.47.

Continue Reading

Trending