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The Markets
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The Markets
by Proactive
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Tesla production grows by almost 50% in 2022 despite ‘significant challenges’

Tesla produced 1.37mln vehicles in 2022, 47% more than in 2021

Tesla Inc (NASDAQ:TSLA) reported it produced 1.37mln vehicles in 2022, marking a 47% increase over the preceding year.

The electric vehicle (EV) manufacturer said its growth came despite “significant COVID and supply chain related challenges throughout the year,” whilst adding it would post full quarterly results on 25 January.

Tesla meanwhile reported EV deliveries totalled 1.31mln, which similarly represented an increase of some 40%.

Nevertheless, Tesla output missed Wall Street forecasts for the fourth quarter, with deliveries in the final three months of the year arriving at 405,000 units, some way short of the consensus market forecast which was pitched at 430,000.

It adds to a year of woes for Tesla, which saw millions of vehicles recalled over software issues in 2022, meanwhile its share price plummeted by around 65%.

Investors largely blamed chief executive Elon Musk for the fall in value, after he offloaded US$40bn worth of his own Tesla shares to fund the acquisition of Twitter Inc (NYSE:TWTR).

Musk did say he was through selling the stock for “a minimum of 18-24 months” in December however, adding he wanted “to make sure there’s still some powder dry to account for a worst-case scenario”.

Wedbush analysts responded that Tesla may have bottomed “if Musk refocuses back on Tesla, truly stops selling stock, the board initiates a buyback, and 2023 guidance is set conservatively.”

Tesla is also planning staff cuts and a hiring freeze, according to late December reports, while discounts worth US$7,500 have been placed on its Model 3 and Y vehicles.

Tesla shares were up 1.12% to US$123 on Tuesday.

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