Tesla Delivers Record 422,875 EVs in Q1 2023, but Days of Finished Goods Inventory Metric Soars Despite Wide-Ranging Price Cuts of up to 20 Percent

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Aided by significant catalysts that played a major role in pulling forward the demand for Tesla EVs, the company just reported another quarter of record deliveries. However, when looking under the hood, the EV giant appears to be contending with a persistent demand weakness – hardly a surprise, given the deteriorating macroeconomic conditions in the US and the EU.

As of Q4 2022, Tesla had an annual production capacity of 1.9 million units. The company continues to aggressively increase its annual production capacity by ramping up its Berlin, Austin, Shanghai, and Fremont gigafactories.

Quick note re $TSLA's delivery number:

On the back of my envelope, Tesla now probably makes only around $7000 net on each incremental car sold (and "loses" $7000 on each car NOT sold).

With 3.2B shares outstanding, that means ± 15,000 cars is only around .03/share in earnings.

— Stanphyl Capital ❌ (@StanphylCap) April 2, 2023

In order to combat growing demand weakness, Tesla has aggressively slashed the prices of its EVs in recent weeks, sacrificing its industry-leading margins to maintain sales momentum. The prices of the company’s bread-and-butter Model 3 and Model Y EVs have been slashed by up to 20 percent. Moreover, in early March, Tesla reduced the base price of its Model S by 5.3 percent and that of Model X by 9.1 percent in the US. Following these hefty price cuts, the Plaid versions of both models are now priced at $109,990.

Hi everybody. Here are my final Tesla production & delivery estimates for Q1 2023 in a format that's easy to compare to the actual numbers Tesla is expected to release on Apr