Image: Patrick Pleul/Pool
Demand for Tesla vehicles is at an all-time high, Elon Musk said during the Q4 2022 Earnings Call. The company has received almost twice as many orders as its production capacity.
Over the past two quarters, Tesla has faced investor concerns about demand. This comes after around 20,000 vehicles in Q3 2022 still were on their way to customers after the end of the quarter. Although the company explained that this was due to logistics not keeping pace with the growth of its production capabilities, this still did not calm the worried investors. Demand concerns continued to mount in Q4 and intensified especially after Tesla cut the prices of its vehicles in early 2023.
Due to mounting concerns, Elon Musk again clarified the demand situation to investors during the Q4 2022 Earnings Call. He was quick to allay concerns and shared some details regarding current demand. Musk said that in January, Tesla saw the strongest orders ever in its history. As of Wednesday, the company was getting almost twice as many orders as it produced cars, which is a really huge number.
“The most common question we've been getting from investors is about demand. Thus far -- so I want to put that concern to the rest. Thus far in January, we've seen the strongest orders year-to-date than ever in our history. We currently are seeing orders at almost twice the rate of production. So it's hard to say that will continue twice the rate of production, but the orders are high. And we've actually raised the Model Y price a little bit in response to that.”
Musk explained that reducing the price of cars is important, because there are a huge number of people who want to buy a Tesla car, but cannot afford it. Thus, the price changes that the company has applied really matter to the average consumer. In addition, price cuts have made Tesla vehicles eligible for large purchase subsidies in several major markets, including the US, Canada, and Germany. Tesla's goal has always been to make electric vehicles available to as many people as possible, so Musk is glad that the manufacturer is finally able to do this.
"It's sometimes for those -- for people who are well -- who have a lot of money, they sort of forget about how important affordability is. And it's always been our goal at Tesla to make cars that are affordable to as many people as possible, so I'm glad that we're able to do so. And yes, so I think it's a good thing, all things considered."
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.