April 1, 2023

The Queens County Citizen

Complete Canadian News World

Deliveries in 2022 are disappointing for Tesla

Deliveries in 2022 are disappointing for Tesla

Tesla said Monday it expects to deliver 1.31 million electric vehicles in 2022, a record and a 40% year-over-year jump, but below its own forecast and Wall Street expectations.

Elon Musk’s company has set a long-term goal of increasing its deliveries by an average of 50% per year.

That target fluctuates depending on its operations, and in Monday’s press release, it highlighted the impact of COVID, which led to the closure of its factory in China for several weeks, and which it regularly cited issues with its supply chains.

In October, the CFO warned that Tesla might not meet its target this year.

Analysts, however, expected more: They expected deliveries of 427,000 vehicles in the fourth quarter, according to estimates compiled by FactSet – the group delivered 405,000.

To boost sales, Tesla offered unusual promotions to customers who agreed to take possession of the new car before the end of December.

In an email sent to employees last week and seen by CNBC, Elon Musk also asked to volunteer to deliver as many cars as possible before the end of 2022.

Many observers fear demand for the manufacturer’s more expensive cars could slow at a time when the economic climate is uncertain and other manufacturers offer more competitive models.

They are also concerned that Elon Musk is focusing on his new business, Twitter, rather than Tesla.

After rising in 2020 and 2021, the automaker’s stock fell 65% in 2022.