Tesla Q4 2018 Vehicle Production & Deliveries, Also Announcing $2,000 Price Reduction in US
January 02 2019 - 8:33AM
In Q4, we produced and delivered at the rate of nearly 1,000
vehicles per day, setting new company records for both production
and deliveries.
Production in Q4 grew to 86,555 vehicles, 8% more than our prior
all-time high in Q3. This included:
- 61,394 Model 3 vehicles, in line with our guidance and 15% more
than Q3.
- 25,161 Model S and X vehicles, consistent with our long-term
run rate of approximately 100,000 per year.
Q4 deliveries grew to 90,700 vehicles, which was 8% more than
our prior all time-high in Q3. This included 63,150 Model 3 (13%
growth over Q3), 13,500 Model S, and 14,050 Model X vehicles.
In 2018, we delivered a total of 245,240 vehicles: 145,846 Model
3 and 99,394 Model S and X. To put our growth into perspective, we
delivered almost as many vehicles in 2018 as we did in all prior
years combined.
Our Q4 Model 3 deliveries were limited to mid- and higher-priced
variants, cash/loan transactions, and North American customers
only. More than three quarters of Model 3 orders in Q4 came from
new customers, rather than reservation holders.
There remain significant opportunities to continue to grow Model
3 sales by expanding to international markets, introducing
lower-priced variants and offering leasing. International
deliveries in Europe and China will start in February 2019.
Expansion of Model 3 sales to other markets, including with a
right-hand drive variant, will occur later in 2019.
1,010 Model 3 vehicles and 1,897 Model S and X vehicles were in
transit to customers at the end of Q4, and will be delivered in
early Q1 2019. Our inventory levels remain the smallest in the
automotive industry, and we were able to reduce vehicles in transit
to customers by significantly improving our logistics system in
North America.
Moving beyond the success of Q4, we are taking steps to
partially absorb the reduction of the federal EV tax credit (which,
as of January 1st, dropped from $7,500 to $3,750). Starting today,
we are reducing the price of Model S, Model X and Model 3 vehicles
in the U.S. by $2,000. Customers can apply to receive the $3,750
federal tax credit for new deliveries starting on January 1, 2019,
and may also be eligible for several state and local electric
vehicle and utility incentives, which range up to $4,000. Combined
with the reduced costs of maintenance and of charging a Tesla
versus paying for gas at the pump – which can result in up to $100
per month or more in savings – this means our vehicles are even
more affordable than similarly priced gasoline vehicles.
Tesla’s achievements in 2018 likely represent the biggest
single-year growth in the history of the automotive industry. We
started the year with a delivery run rate of about 120,000 vehicles
per year and ended it at more than 350,000 vehicles per year – an
increase of almost 3X. As a result, we’re starting to make a
tangible impact on accelerating the world to sustainable energy.
Additionally, 2018 was the first time in decades that an American
car – the Model 3 – was the best-selling premium vehicle in the
U.S. for the full year, with U.S. sales of Model 3 roughly double
those of the runner up.
We want to thank our customers, suppliers, investors, and
especially our employees, who worked so hard to accomplish
this.
***************
Our net income and cash flow results will be announced along
with the rest of our financial performance when we announce Q4
earnings. Our delivery count should be viewed as slightly
conservative, as we only count a car as delivered if it is
transferred to the customer and all paperwork is correct. Final
numbers could vary by up to 0.5%. Tesla vehicle deliveries
represent only one measure of the company’s financial performance
and should not be relied on as an indicator of quarterly financial
results, which depend on a variety of factors, including the cost
of sales, foreign exchange movements and mix of directly leased
vehicles.
Forward-Looking Statements
Certain statements herein, including statements regarding
growing the addressable market for Model 3, such as our plans and
timing for international expansion, are “forward-looking
statements” that are subject to risks and uncertainties. These
forward-looking statements are based on management’s current
expectations. Various important factors could cause actual results
to differ materially, including the risks identified in our SEC
filings. Tesla disclaims any obligation to update this
information.
Investor Relations Contact:
ir@tesla.com
Press Contact:
press@tesla.com
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