Elon Musk-led Tesla Expected to Sell More Than 1.7 Million Electric Vehicles in 2023: Report

Tesla sold a total of 1.3 million units of electric cars in 2022, with the US leading the market share, followed by China and Europe.

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Elon Musk-run Tesla's 2023 vehicle deliveries are projected to exceed 1.7 million units, with a 31 per cent YoY growth, and it seems attainable if the company`s recent price cuts remain in effect for most of the year, a report showed on Monday. Tesla's strong fundamentals are expected to keep the company ahead of most other electric vehicle brands globally. Tesla announced price cuts this month, which has resulted in the demand ballooning to twice the production, according to Counterpoint Research. Besides, pilot production of the Tesla Semi began in 2022 and the vehicle is expected to hit the road soon.

The company also plans to start production of the Cybertruck in mid-2023. Furthermore, Tesla recently announced an investment of $3.6 billion to set up a 100GW capacity cell factory and a high-volume semi factory. Riding on record 405,278 vehicle deliveries in Q4 2022, Tesla registered a record total revenue of $24.3 billion during the quarter, an increase of 37 per cent YoY.

Deliveries rose 31.3 per cent YoY in Q4, bringing the 2022 annual total to 1.3 million units. The US was the leading market in Q4, followed by China and Europe. The annual deliveries of Tesla's premium Model X and Model S grew 167 per cent YoY to reach 66,000 units.

Tesla's inventory in Q4 stood at 34,423 units, bringing the annual total to 55,760 units. The Covid-19 outbreak in China and the increased production in the Berlin factory are probable causes of the higher inventory.

"In addition, Tesla is facing stiff competition as legacy automakers and new players are offering more affordable EVs. In January 2023, Tesla lowered prices globally, which may help in clearing out inventories and achieving economies of scale," said the report.