Tesla TSLA Q2 2023 automobile manufacturing and supply figures

Tesla released its vehicle production and delivery report for the second quarter of 2023 on Sunday.

Here are the key figures from the electric vehicle manufacturer:

Total shipments Q2 2023: 466,140

Total production Q2 2023: 479,700

The numbers beat analysts’ expectations and suggest that Tesla’s deliveries rose 83% year over year after Elon Musk’s auto business expanded manufacturing capacity and ramped up production at its Austin, Texas, vehicle assembly plant.

Tesla groups shipments into two categories, but doesn’t report individual model- or region-specific numbers.

The second quarter of 2023 was the fifth straight period in which Tesla reported higher levels of vehicles produced versus deliveries.

In the second quarter of last year, Tesla reported 254,695 deliveries, and in the first quarter of 2023, Tesla reported 422,875 deliveries. In the second quarter of 2022, Tesla produced 258,580 vehicles and in the last quarter 440,808 vehicles.

Deliveries are a number closely watched by Tesla shareholders and come closest to the sales reported by the company.

According to analyst estimates from FactSet’s Street Account, Wall Street expected Tesla to report 445,924 deliveries for the period ended June 30, 2023.

The independent researcher, which publishes under the name TroyTeslike, expected deliveries of 448,000 and a production of 471,355 vehicles.

CEO Elon Musk’s electric vehicle maker offered some rebates and other incentives during the quarter to boost sales of its cars in the US, including its entry-level Model 3 sedan and more recently its older Model X SUV and flagship Model S sedans, which currently represent only a small percentage of Tesla’s total sales.

The Model 3 and Y are now eligible for a US$7,500 tax credit under the Inflation Reduction Act.

About 96% of Tesla’s reported deliveries in the second quarter of 2023 were the Model Y crossover and entry-level Model 3 sedan that quarter.

Alexander E. Potter, senior research analyst at Piper Sandler, wrote in a June 26 note that according to the company’s analysis, “Prices for Tesla overall remained stable in the second quarter.” The company’s steep price cuts in and outside of China in the first quarter sparked rumors of a “price war” in the electric vehicle market. Potter warned that “price cuts in the third quarter, if any, could reignite investor concerns about margins.”

Tesla currently operates vehicle assembly plants in Fremont, California, Austin, Texas, and overseas in Shanghai and Brandenburg, Germany (outside of Berlin). The company also makes the Semi, a heavy-duty electric truck, at its battery plant in Sparks, Nevada. Deliveries of the Semi began in December 2022, but Tesla is still not mass-producing the trucks.

In March, Musk announced that Tesla plans to build a new factory near Monterrey, Mexico, a day’s drive from its Austin, Texas facility. After meeting Indian Prime Minister Narendra Modi in New York in June, Musk said Tesla also wanted to invest in India “as soon as possible.”

The company is expected to begin selling a partially redesigned version of the Model 3 in North America later this year. At an annual shareholder meeting in May, Musk also said that Tesla will ship its first Cybertruck pickups in 2023 and is developing a new type of power unit and other technologies that should allow it to launch a more affordable electric vehicle in the future.

Anticipation of newer and more affordable models, coupled with increasing competition, particularly in China, could continue to put pressure on sales.

Musk, who is also Twitter chairman and CTO as well as CEO of SpaceX, wrote in a tweet ahead of the release of the second quarter delivery report: “Please advise people to be cautious about margin lending. Tesla has always been a high variability stock, often for no apparent reason or reason. We are confident in long-term value creation but cannot control the manic-depressive nature of the stock market.”

Tesla shares closed at $261.77 on Friday ahead of the release of its second-quarter delivery report. The company said in a statement that it would release financial results for the second quarter after the market close on Wednesday, July 19, 2023.

– CNBC’s Ashley Capoot contributed to the coverage.

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