Tesla Delivers Record 405,278 Cars in Quarter But Misses Target

Tesla Inc. delivered 405,278 cars worldwide in the fourth quarter, eking out a record despite rising interest rates, inflation and crimped production in China.

Despite delivering a record number of cars, Tesla fails to meet its growth targets. (AP)

Tesla Inc. delivered 405,278 cars worldwide in the fourth quarter, eking out a record despite rising interest rates, inflation and crimped production in China. 

The results, posted Monday, missed expectations. In an effort to clear inventory, Tesla dangled discounts of $7,500 to consumers in the US who took delivery in the last days of December. Analysts had expected the company would ship 420,760 vehicles — the average of estimates compiled by Bloomberg.  

Tesla delivered more than 1.31 million cars for the year, falling short of the 50% year-over-year growth that the company has aimed for. In 2022, vehicle deliveries grew 40% from a year earlier, while production climbed 47% to 1.37 million, Tesla said in its statement. The company produced 439,701 vehicles. 

More than 34,000 cars remained in transit at the end of the quarter. 

“We continued to transition towards a more even regional mix of vehicle builds which again led to a further increase in cars in transit at the end of the quarter,” said Tesla. 

Tesla's quarterly delivery figures are widely seen as a barometer for EV demand generally, since the Austin, Texas-based company has led the charge for battery-powered cars. 

The company has a long tradition of going all-out at the end of the quarter to get cars into the hands of paying customers, with top executives like design chief Franz von Holzhausen helping out at a southern California delivery center on New Year's Eve. 

Tesla doesn't break out sales by region, but the US and China are its largest markets and 95% of sales in 2022 were of the Model 3 sedan and Y crossover. 

Tesla makes the Model S, X, 3 and Y at its factory in Fremont, California. It's Shanghai factory produces the Model 3 and Y. Tesla recently began delivering Model Ys from its newest plants in Austin and Berlin.

Tesla handed over its first Class 8 “Semi” trucks to Pepsi Co. in December, but the quarterly press release did not include any figures for the Semi truck.