Tesla, Inc. stands as a formidable player in the automotive and energy sectors, with its foundational focus on the design, development, and sale of electric vehicles (EVs), alongside its ventures into energy storage and photovoltaic system domains. With a staggering market capitalization north of $830 billion, Tesla has secured its spot as the 8th most sought-after global company in terms of value. Enthusiasts and investors are eagerly anticipating its Q3 2023 earnings announcement set for 18th October (Wednesday) post-market hours. In its Q3 2023 report, Tesla showcased a robust growth trajectory, registering a production of 430,488 vehicles, marking an 18% growth year-over-year. The deliveries for the quarter also witnessed a surge, standing at 435,059, which is a 27% increase from the corresponding period the previous year. Breaking down by models - Model 3/Y continued to dominate the charts with a production and delivery growth of 20% and 29% respectively, touching numbers of 416,800 and 419,074. In stark contrast, the premium Model S/X saw a decline in production and deliveries by 31% and 14% respectively, with figures dropping to 13,688 (the lowest since Q4 2021) and 15,985.
Tesla's year-to-date performance is equally impressive, with the production of over 1.35 million electric vehicles, up by 45% from last year. Deliveries too have soared to over 1.32 million, marking a 46% hike. While a downturn in production and deliveries from the previous quarter was observed, industry insiders were not caught off-guard. Tesla had pre-empted these developments, attributing them to planned temporary shutdowns at certain factories for essential internal upgrades. Notwithstanding the brief hiccup, Tesla's management remains committed to their ambitious 2023 delivery target of approximately 1.8 million vehicles.
Within the rapidly evolving EV landscape, Tesla continues to be the gold standard, outperforming the industry’s average growth rate of 16.3%. Factors like competitive pricing, broader product availability, increased inventory, and shifting consumer perceptions towards EVs have catalyzed the industry's success. Data from Cox Automotive further consolidates this narrative, revealing that the US market witnessed the sale of over 300,000 EVs for the first time ever. It's a quantum leap from the 250,000 mark touched just three years prior in 2020. With the year-to-date EV sales already surpassing 873,000, industry analysts are optimistic about reaching the 1 million sales mark by year-end.
Financial analysis from Refinitiv projects Tesla's revenue for the quarter at an estimated $24.21B. The earnings per share (EPS) have been recalibrated to $0.74, attributed mainly to the dip in delivery numbers. However, there's silver lining with gross profit margins showing promise of an upward trend, albeit projected to linger around the 18% bracket.
