Tesla Factory

Tesla misses 2023 production target

Chinese competitor BYD closes in on EV space
Image: Bigstock

3 January 2024

End-of-year figures for 2023 for Tesla have shown a 35% year-on-year increase in production and 38% in deliveries. The Elon Musk-fronted company reported 1.8 million vehicles delivered with 1.84 million in production. While impressive these numbers fall short of the brash CEO’s target of 2 million vehicles. Expectations were adjusted by executives in October bringing the figures into line, however, it is worth noting that deliveries in the fourth quarter exceeded analysts’ expectations.

Absent from the report is the performance of the company’s new Cybertruck, which began delivery on 30 November. Some 2 million reservations remain but Musk has been tightlipped on production targets.

Since the beginning of last year, Tesla, which has a higher profit margin per vehicle than its competitors, has been waging a price war. This strategy continued last quarter, given “the period of economic uncertainty, higher interest rates and changing consumer sentiment,” according to chief financial officer Vaibhav Taneja.




Competition is hotting up in the EV sector. Chinese manufacturer BYD sold 1.6 million vehicles, and delivered 1.4 million in 2023, beating Tesla in terms of production and deliveries for the second consecutive year, with more than 3 million electric vehicles produced and sold. But BYD also produces hybrid vehicles so in terms of all-electric vehicles, Tesla remains just slightly ahead.

For 2024 Musk remains optimistic: “To state the obvious, it is not possible to always achieve a growth rate of 50%, otherwise you will exceed the mass of deliveries of the universe we know. But I think we will experience very rapid growth, much faster than any other automaker on earth,” he said to CNBC during the presentation of the report.

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