Tesla is reporting an increase in sales during the first quarter of this year. Of the 440,808 vehicles the company produced between January and the end of March 2023, 422,875 were delivered to customers. This is a notable increase from the sales figures posted back in early 2022. Tesla reportedly sold 36% fewer vehicles in the same time period last year. Unsurprisingly, the bulk of the sales involved the EV maker’s cheaper products — 412,180 of the sales were of a Model 3 sedan or Model Y Crossover, while high-end vehicles like the Model X and Model S accounted for 10,695 deliveries last quarter.
There’s a small chance the figures could decrease, as around 5% of the sales are “subject to operating lease accounting.” The full results of Tesla’s financial activity for the last quarter will be published on April 19, with Tesla officials holding a live question-and-answer session for investors that same day. The upcoming report will likely include more details, including a further breakdown of the sales by vehicle, and the locations where the sales were made.
Despite the sales boost, demand isn’t outstripping supply
The report confirms that Tesla has been shipping fewer vehicles than it has manufactured every quarter for an entire year. This is a huge contrast to recent years, which saw long waiting lists and crazy markups for the popular electric vehicles. Some individuals were selling used Teslas for 10s of thousands of dollars over a new vehicle’s MSRP — as people attempted to skip the waiting lists and others saw an opportunity to cash in on their recent purchase.
Tesla itself also increased prices several times during this period, citing things like the increased cost of materials and other factors as the reason behind the inflated price tags. Disruptions caused by things like the coronavirus pandemic, and a global semiconductor shortage, meant the number of Teslas rolling off the production line dropped. Demand for electric vehicles is also continuously rising, with things like gas prices, environmental concerns, and government incentives all playing a part.
Prices do seem to have peaked, and things are heading back toward pre-pandemic levels as the production of the vehicles increases. The price of a new Tesla has dipped by as much as 20% for some models and trims. As you may expect, the price of used cars has gone the same way. People are unlikely to pay above MSRP for a vehicle that is even lightly used when unsold brand-new ones are sitting available on a lot.
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Rubi Mcnaught