Tesla Inc., the electric vehicle manufacturer, achieved a nearly 20% increase in fourth-quarter vehicle sales, propelled by significant price reductions.
The Austin-based company revealed on Tuesday that it successfully sold 484,507 vehicles globally from October to December, surpassing Wall Street estimates of 473,000 for the quarter, according to data provider FactSet.
For the entire year, Tesla reported sales of just over 1.8 million vehicles, marking a 37.7% increase from the previous year’s numbers. While this fell short of CEO Elon Musk’s prediction of 50% sales growth, it did surpass the company’s internal target for the year of 1.8 million vehicle sales.
Throughout the year, Tesla implemented multiple price cuts in the U.S., including substantial reductions of up to $20,000 on some of its higher-priced models. Even the lowest-priced model, the rear-wheel-drive 3, experienced a cut of at least $6,600. Analysts anticipate that these price reductions may impact Tesla’s profit margins when the company reports earnings on January 24 after the markets close.
Despite the challenges, Tesla’s strategic price adjustments helped it maintain its position as the world’s top seller of electric vehicles, fending off competition from the Chinese powerhouse BYD. BYD reported a notable 73% increase in EV sales for the previous year, reaching 1.57 million.
Notably, the bulk of Tesla’s sales comprised its lower-priced Models 3 and Y, with global deliveries totaling 461,538 in the fourth quarter, reflecting a 19% increase from the previous year. Sales of other models, primarily the S and X, along with some new Cybertrucks, grew by 34% to 22,969. However, specific sales figures for individual models were not provided.
During the quarter, Tesla produced nearly 495,000 vehicles, exceeding deliveries by about 10,000 units.
