Tesla's production figures miss expectations
Tesla on Monday reported record production and deliveries for fourth-quarter electric vehicle deliveries but fell short of Wall Street estimates, burdened by lingering logistics problems and slowing demand amid rising interest rates and recession fears. The world's most valuable automaker delivered 405,278 vehicles in the last three months of the year, compared with Wall Street expectations of 431,117 vehicles, according to Refinitiv data. The company had delivered 308,600 vehicles in the same period a year earlier. Tesla delivered 388,131 Model 3 compact sedans and Model Y sports utility vehicles (SUVs) compared with 17,147 Model X and Model S luxury cars. The automaker made a total of 439,701 cars in the fourth quarter. Tesla has been challenged to secure transportation to accommodate its end-of-quarter delivery surge, with CEO Elon Musk saying in October he was working to resolve the issue. Analysts have also pointed to a potential demand weakness in the world's top auto market China. Tesla plans to run a reduced production schedule in January at its Shanghai plant, extending the lowered output it began this month into next year, according to a Reuters report, based on a review of an internal schedule. There are also concerns of a slowdown at Tesla due to stiff competition from legacy automakers such as Ford Motor, General Motors and startups such as Rivian Automotive and Lucid Group. Uncertainty over EV credits in the United States also likely prompted some potential customers to hold off purchases. (Reuters)