Tesla Has the Potential to Sell 2 Million Vehicles in 2023

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Tesla has made a cautious 2023 delivery forecast of 1.8 million vehicles, subject to unforeseen circumstances. However, the company has the potential to produce 2 million vehicles this year, said Elon Musk.

In recent years, Tesla has repeatedly encountered a number of problems in the global setting, which have had a negative impact on its development. In 2020, the COVID-19 pandemic has affected the entire economy, disrupting production in most industries. The consequences of this haunted the economy for two years until manufacturers and other companies were able to adapt to new realities and restore their activities. In 2022, as the effects of COVID-19 eased significantly, Russia's attack on Ukraine once again affected the global economy, with a negative impact on Tesla as well. The macroeconomic environment in the US was also dealt a heavy blow, having a negative impact on the development of the company.

Unforeseen situations beyond Tesla's control have taught the company to be wary of forecasts made. In its Q4 2022 earnings report, the company said it expects to deliver 1.8 million vehicles in 2023, up 500,000 vehicles from a year earlier and reflecting an increase of around 40%. We can say that this is the number of cars that Tesla will be able to comfortably deliver this year. This forecast takes into account force majeure circumstances that could potentially arise on Earth, although at the moment, there are no specific ones.

However, if there are no unforeseen circumstances and cataclysms this year, Tesla will be able to deliver more cars, Elon Musk said during the Q4 2022 Earnings Call. He said that the internal production capacity of the company's factories is closer to 2 million cars. Therefore, if the year is calm and without any major interruptions or problems, then Tesla will be able to produce about 2 million cars, which will correspond to a 50% annual growth.

“Well, okay. I mean, our internal production potential is actually closer to two million vehicles, but we were saying 1.8 million, because -- I don't know, it just always seems to be some force majeure thing that happened somewhere on earth. And we don't control if there's like earthquakes, tsunamis, wars, pandemics, et cetera. So, if it's a smooth year, actually, without some big supply chain interruption or massive problem, we actually have the potential to do 2 million cars this year. We're not committing to that, but I'm just saying that's the potential. So – and I think there would be demand for that, too.”

© 2023, Eva Fox | Tesmanian. All rights reserved.

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