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In this article TSLA Follow your favorite stocks CREATE FREE ACCOUNTA Tesla Model 3 with opened doors stands in the showroom. But there's one thing Black has had on his mind lately: That Tesla is wasting money on price cuts to keep growth rates high. At the same time, the major price cuts continue as Musk's primary strategy to drum up more interest in Teslas. Overall, the price cuts over the past year have shaved revenue by much more, Ives estimated. In effect, Black argues that Tesla price cuts are a de facto marketing expense, saying Tesla's share losses among EVs by Tesla this year suggest price cuts alone aren't working.
Persons: Gary Black, Tesla, Elon, Musk, didn't, Kevin Paffrath, we'll, they'd, Dan Ives, Black, EVs, Ives, Allen Weiss Organizations: Tesla, Getty, CNBC, @TroyTeslike, Netflix, Cox Automotive, Teslas, Tesla's, Newsday Locations: Chicago, California, U.S, Tesla's U.S, Smithtown , New York
Tesla shares fell more than 7% on Monday after the company's quarterly deliveries report led some investors to worry that more price cuts will be needed to drive sales, eating into margins. The record numbers represented 4% growth in deliveries from the prior period and followed repeated price cuts in the U.S., China and Europe. Sacconaghi said, "The key question for investors is what might margins be, amid significant price cuts but improving commodity costs?" According to FactSet, analyst were expecting Tesla to report deliveries of around 432,000 vehicles for the quarter. He wrote that "incremental price cuts likely needed," especially as the company ramps up production at new factories in Austin, Texas, and outside of Berlin.
Tesla just published its fourth-quarter vehicle production and delivery report for 2022. Total deliveries Q4 2022: 405,278Total production Q4 2022: 439,701Total annual deliveries 2022: 1.31 millionTotal annual production 2022: 1.37 millionDeliveries are the closest approximation of sales disclosed by Tesla. These numbers represented a new record for the Elon Musk-led automaker and growth of 40% in deliveries year-over-year. In its third-quarter shareholder presentation, Tesla wrote: "Over a multi-year horizon we expect to achieve 50% average annual growth in vehicle deliveries. Shares of Tesla started to rise again in the final days of December 2022, in anticipation of record fourth-quarter and full-year deliveries.
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