---
title: "Tesla's annual delivery volume in 2023 is expected to reach a new high, but further progress will require addressing multiple challenges."
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/105251464.md"
description: "Tesla's electric vehicle deliveries in 2023 are expected to reach a record high of 1.8 million units. However, Tesla faces multiple challenges, including expanding its appeal, attracting everyday buyers, and dealing with competition. Tesla plans to lower prices globally to stimulate sales, but its market share in China has declined. In addition, Tesla's electric pickup truck, the Tesla Cybertruck, faces significant challenges, and profit margins will continue to be under pressure. There is uncertainty surrounding Tesla's delivery volume in 2024. Overall, Tesla is at a critical moment in balancing innovation, strategic pricing, and market penetration."
datetime: "2024-01-02T06:43:16.000Z"
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  - [zh-CN](https://longbridge.com/zh-CN/news/105251464.md)
  - [en](https://longbridge.com/en/news/105251464.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/105251464.md)
---

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# Tesla's annual delivery volume in 2023 is expected to reach a new high, but further progress will require addressing multiple challenges.

Zhitong App has learned that Tesla's electric vehicle deliveries in 2023 are expected to reach a new high, but this also signifies a new challenge for Tesla as it needs to expand beyond its fan base and tech enthusiasts. As this electric vehicle giant seeks to broaden its appeal, the obstacles are becoming increasingly daunting.

Analysts predict that Tesla's deliveries in the fourth quarter of 2023 are expected to be close to 483,200 vehicles, which will drive the company's total deliveries in 2023 to exceed 1.8 million vehicles. However, this number is still insignificant compared to the annual deliveries of automotive giants such as Toyota and General Motors.

In order to expand beyond its fan base, Tesla must attract everyday buyers and focus on the affordability and convenience of their choice of vehicles. Tesla's CFO, Vaibhav Taneja, has previously emphasized this shift and highlighted the pursuit of the next wave of electric vehicle users.

However, economic uncertainty caused by inflation and high interest rates has dampened consumer spending on major investments, while ongoing concerns about safety and charging infrastructure have hindered the potential transition to electric vehicles. Additionally, competition in the crowded electric vehicle market is becoming increasingly fierce.

One of Tesla's strategic moves in 2023 is to significantly reduce prices globally to stimulate sales. In the US market, some Detroit automakers such as General Motors and Ford seem to be slowing down their electrification efforts, making Tesla the undisputed leader in the US electric vehicle market. In the Chinese market, Tesla faces fierce competition from local companies such as BYD, and its market share has declined.

Tesla has also started deliveries of its electric pickup truck, the Cybertruck, but its mass production poses "significant challenges," and as Tesla increases Cybertruck production and prepares to launch cheaper models, the company's profit margin will continue to be under pressure.

There is uncertainty about Tesla's deliveries in 2024, as its existing models, the Model 3 and Model Y, dominate the company's sales, but these two models have become outdated in the rapidly evolving electric vehicle market.

Analysts like Toni Sacconaghi express doubts about Tesla's future trajectory, citing reasons such as aging product line and unstable pricing in the face of intensified competition. These views reflect a more general sense of concern about how Tesla can stimulate potential demand and sustain it until 2025.

It is worth noting that Tesla is not without strategic leverage. Tesla plans to revamp the Model 3 with a more stylish design and longer range to revive potential markets. The company's Shanghai Gigafactory plans to launch a brand-new Model Y, which also hints at its innovation-driven roadmap. In addition, Tesla is venturing into the marketing field, delving into Google advertising and lease promotions, marking a shift from its traditional non-advertising stance.Owuraka Koney from Jennison Associates remains optimistic about the prospects of Tesla. He emphasizes the proactive measures taken by Tesla and mentions the attractiveness of the Cybertruck and the increasing prominence of other key executives.

Overall, in the process of addressing various challenges, Tesla's pursuit of wider application of electric vehicles is at a critical moment - striking a balance between innovation, strategic pricing, and market penetration to attract public participation in the electric vehicle revolution.

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