Tesla's Q4 Delivery Success Signals Major Achievement Amid Industry Scrutiny

Tesla Inc. has reported a significant delivery beat for the fourth quarter (Q4), surpassing consensus expectations and achieving its annual production goals. The electric vehicle (EV) manufacturer recorded deliveries of 484,507 units, outperforming Wall Street estimates of 480,000 units and even the more optimistic 'whisper' number of 478,000 units. This accomplishment is viewed as a 'major achievement' by analysts in the industry following Tesla's performance.

Analysts Respond to Tesla's Record Deliveries

Wedbush analyst Daniel Ives has noted Tesla's strong Q4 performance as particularly noteworthy, praising the company for reaching 1.8 million vehicles for the year. With Model 3 and Model Y vehicles leading the charge and the Chinese market identified as a significant success area, Tesla's delivery numbers paint a picture of robust demand and operational efficiency. Despite some production figures coming slightly below certain forecasts, inventory management was credited for the company's impressive results. Ives maintained an 'Outperform' rating for Tesla stock, reflecting his confidence in the company's trajectory.

Gary Black, a fund manager, highlighted that Tesla's delivery figures could have been even higher if not for a shipment delay caused by a stink bug infestation. The upcoming quarterly earnings report is anticipated to provide further insights into Tesla's margins and projections for 2024.

Gene Munster of Deepwater Asset Management expects stable margins, which are seen as a positive sign, suggesting an end to a year-and-a-half trend of declining margins. His forecast is consistent with an anticipated 17% delivery growth for Tesla in 2024, which bodes well for the company's market share in the U.S.

Contrarian Views and Market Challenges

Amid the general positivity, there are some concerns within certain corners of the investment community. Notably, Tesla bear Gordon Johnson highlights a series of potential red flags, including a 20% year-over-year growth in Q4 which he claims is the lowest increase since 2020. Johnson points out concerns over cash burn due to inventory build and a track record of production outstripping sales. He also noted that BYD Co. Ltd., another EV manufacturer, outsold Tesla in terms of battery EVs during Q4 and raised the issue of Tesla models losing full tax credits starting January 1.

Despite these concerns, Tesla's stock price saw a modest increase, demonstrating investor's continuing faith in the EV leader's performance and market strategy.

Tesla, Deliveries, Achievement