Tesla Increased Model 3 Production by 15% in Fourth Quarter and Will Drop Prices By $2000
Production in Q4 grew to 86,555 vehicles, 8% more than their prior all-time high in Q3. This included:
61,394 Model 3 vehicles, in line with our guidance and 15% more than Q3.
25,161 Model S and X vehicles, consistent with our long-term run rate of approximately 100,000 per year.
Q4 deliveries grew to 90,700 vehicles, which was 8% more than their prior all time-high in Q3. This included 63,150 Model 3 (13% growth over Q3), 13,500 Model S, and 14,050 Model X vehicles.
In 2018, Tesla delivered a total of 245,240 vehicles: 145,846 Model 3 and 99,394 Model S and X. They delivered almost as many vehicles in 2018 as we did in all prior years combined.
Tesla is partially absorbing the reduction of the federal EV tax credit. The federal tax credit is dropping from $7,500 to $3,750. Tesla is reducing the price of Model S, Model X and Model 3 vehicles in the U.S. by $2,000. Customers can apply to receive the $3,750 federal tax credit for new deliveries starting on January 1, 2019, and may also be eligible for several state and local electric vehicle and utility incentives, which range up to $4,000.
They started the year making about 120,000 vehicles per year and ended it at more than 350,000 vehicles per year – an increase of almost 3X. 2018 was the first time in decades that an American car – the Model 3 – was the best-selling premium vehicle in the U.S. for the full year, with U.S. sales of Model 3 roughly double those of the runner-up.