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

Credit: Andrew Lake | Tesla CyberTruck group on Facebook

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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

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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.

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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

Elon Musk

Tesla blacklisted by Swedish pension fund AP7 as it sells entire stake

A Swedish pension fund is offloading its Tesla holdings for good.

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tesla
(Credit: Tesla)

Tesla shares have been blacklisted by the Swedish pension fund AP7, who said earlier today that it has “verified violations of labor rights in the United States” by the automaker.

The fund ended up selling its entire stake, which was worth around $1.36 billion when it liquidated its holdings in late May. Reuters first reported on AP7’s move.

Other pension and retirement funds have relinquished some of their Tesla holdings due to CEO Elon Musk’s involvement in politics, among other reasons, and although the company’s stock has been a great contributor to growth for many funds over the past decade, these managers are not willing to see past the CEO’s right to free speech.

However, AP7 says the move is related not to Musk’s involvement in government nor his political stances. Instead, the fund said it verified several labor rights violations in the U.S.:

“AP7 has decided to blacklist Tesla due to verified violations of labor rights in the United States. Despite several years of dialogue with Tesla, including shareholder proposals in collaboration with other investors, the company has not taken sufficient measures to address the issues.”

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Tesla made up about 1 percent of the AP7 Equity Fund, according to a spokesperson. This equated to roughly 13 billion crowns, but the fund’s total assets were about 1,181 billion crowns at the end of May when the Tesla stake was sold off.

Tesla has had its share of labor lawsuits over the past few years, just as any large company deals with at some point or another. There have been claims of restrictions against labor union supporters, including one that Tesla was favored by judges, as they did not want pro-union clothing in the factory. Tesla argued that loose-fitting clothing presented a safety hazard, and the courts agreed.

tesla employee

(Photo: Tesla)

There have also been claims of racism at the Fremont Factory by a former elevator contractor named Owen Diaz. He was awarded a substantial sum of $137m. However, U.S. District Judge William Orrick ruled the $137 million award was excessive, reducing it to $15 million. Diaz rejected this sum.

Another jury awarded Diaz $3.2 million. Diaz’s legal team said this payout was inadequate. He and Tesla ultimately settled for an undisclosed amount.

AP7 did not list any of the current labor violations that it cited as its reason for

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Investor's Corner

xAI targets $5 billion debt offering to fuel company goals

Elon Musk’s xAI is targeting a $5B debt raise, led by Morgan Stanley, to scale its artificial intelligence efforts.

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(Credit: xAI)

xAI’s $5 billion debt offering, marketed by Morgan Stanley, underscores Elon Musk’s ambitious plans to expand the artificial intelligence venture. The xAI package comprises bonds and two loans, highlighting the company’s strategic push to fuel its artificial intelligence development.

Last week, Morgan Stanley began pitching a floating-rate term loan B at 97 cents on the dollar with a variable interest rate of 700 basis points over the SOFR benchmark, one source said. A second option offers a fixed-rate loan and bonds at 12%, with terms contingent on investor appetite. This “best efforts” transaction, where the debt size hinges on demand, reflects cautious lending in an uncertain economic climate.

According to Reuters sources, Morgan Stanley will not guarantee the issue volume or commit its own capital in the xAI deal, marking a shift from past commitments. The change in approach stems from lessons learned during Musk’s 2022 X acquisition when Morgan Stanley and six other banks held $13 billion in debt for over two years.

Morgan Stanley and the six other banks backing Musk’s X acquisition could only dispose of that debt earlier this year. They capitalized on X’s improved operating performance over the previous two quarters as traffic on the platform increased engagement around the U.S. presidential elections. This time, Morgan Stanley’s prudent strategy mitigates similar risks.

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Beyond debt, xAI is in talks to raise $20 billion in equity, potentially valuing the company between $120 billion and $200 billion, sources said. In April, Musk hinted at a significant valuation adjustment for xAI, stating he was looking to put a “proper value” on xAI during an investor call.

As xAI pursues this $5 billion debt offering, its financial strategy positions it to lead the AI revolution, blending innovation with market opportunity.

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Elon Musk

Tesla tops Cathie Wood’s stock picks, predicts $2,600 surge

Tesla’s future lies beyond cars—with robotaxis, humanoid bots & AI-driven factories. Cathie Wood predicts a 9x surge in 5 years.

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Cathie Wood shared that Tesla is her top stock pick. During Steven Bartlett’s podcast “The Diary Of A CEO,” the Ark Invest founder highlighted Tesla’s innovative edge, citing its convergence of robotics, energy storage, and AI.

“Because think about it. It is a convergence among three of our major platforms. So, robots, energy storage, AI,” Wood said of Tesla. She emphasized the company’s potential beyond its current offerings, particularly with its Optimus robots.

“And it’s not stopping with robotaxis; there’s a story beyond that with humanoid robots, and our $2,600 number has nothing for humanoid robots. We just thought it’d be an investment, period,” she added.

In June 2024, Ark Invest issued a $2,600 price target for Tesla, which Wood reaffirmed in a March Bloomberg interview, projecting the stock to reach this level within five years. She told Bartlett that Tesla’s Optimus robots would drive productivity gains and create new revenue streams.

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Elon Musk echoed Wood’s optimism in a CNBC interview last month.

“We expect to have thousands of Optimus robots working in Tesla factories by the end of this year, beginning this fall. And we expect to scale Optimus up faster than any product, I think, in history to get to millions of units per year as soon as possible,” Musk said.

Tesla’s stock has faced volatility lately, hitting a peak closing price of $479 in December after President Donald Trump’s election win. However, Musk’s involvement with the White House DOGE office triggered protests and boycotts, contributing to a stock decline of over 40% from mid-December highs by March.

The volatility in Tesla stock alarmed investors, who urged Musk to refocus on the company. In a May earnings call, Musk responded, stating he would be “scaling down his involvement with DOGE to focus on Tesla.” Through it all, Cathie Wood and Ark Invest maintained their faith in Tesla. Wood, in particular, predicted that the “brand damage” Tesla experienced earlier this year would not be long term.

Despite recent fluctuations, Wood’s confidence in Tesla underscores its potential to redefine industries through AI and robotics. As Musk shifts his focus back to Tesla, the company’s advancements in Optimus and other innovations could drive it toward Wood’s ambitious $2,600 target, positioning Tesla as a leader in the evolving tech landscape.

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