Tesla, the world’s largest electric car maker, reported a record number of deliveries in the fourth quarter of 2023, as tax incentives and price cuts made its vehicles more affordable than comparable gasoline models.
The company delivered 1.2 million vehicles in the last three months of the year, up 28% from the same period in 2022 and beating analysts’ expectations. Tesla also produced 1.3 million vehicles in the quarter, a 32% increase from a year ago.
Tesla’s strong performance was driven by robust demand in the U.S., where buyers could benefit from a federal tax credit of up to $12,500 for purchasing an electric vehicle, as well as state and local incentives. Tesla also lowered the prices of some of its models, such as the Model 3 sedan and the Model Y crossover, to make them more competitive with rival offerings.
However, Tesla faces growing challenges in China, its second-largest market, where it faces increasing competition from domestic and foreign electric car makers, as well as regulatory scrutiny over quality and safety issues. Tesla’s market share in China fell to 11% in November, down from 21% in January, according to data from the China Passenger Car Association.
Tesla’s founder and chief executive, Elon Musk, said on Twitter that he was “very proud” of the company’s achievements and thanked customers and employees for their support. He also said that Tesla would continue to invest in new products and technologies, such as its Cybertruck pickup truck and its Full Self-Driving software.
