Looking Ahead To Q4, Tesla Is Likely To Produce Positive Outcomes
We were starting to worry about Tesla’s 4th quarter (Q4 2022), and why not? The all-electric car company saw its second quarter profit fall 32% from record levels in the first quarter. Supply chain issues and pandemic lockdowns in China slowed production of its vehicles.
Yet now, there is a report circulating that Tesla plans to push global production of its top selling Model Y and Model 3 vehicles sharply higher in the 4th quarter. Moreover, as it continues to build on that growth in 2023 — with newer factories in Austin and Berlin ramping production — the company output forecasts show an upward trajectory.
Tesla’s 4th quarter is suddenly looking quite bright. If company goals can be achieved — as the company seems to expect — Q4 Tesla production would put the EV maker on track to meet CEO Elon Musk’s goals of 1.5 million possible units for 2022. Internal plans reviewed by Reuters indicate that “the production plans would see Tesla blow past projected growth in the global market for autos by close to a factor of 10 in 2023 with a production increase of over 50% for the year.”
Could it really be so?
Sources told Reuters last week the plan was to run production at 20,500 vehicles a week for the remainder of the year.
At Tesla’s 2022 Annual Meeting of Stockholders in August, Musk projected that the company aimed to hit a production run rate of 2 million vehicles per year by the end of 2022 and would continue building factories to meet those production goals. In a Securities and Exchange Commission (SEC) filing, Tesla said it intends to continue to accentuate its battery development, among other projects, to solidify its corporate plan and mission. “The long-term success of this business,” Tesla explained in the filing, “is dependent upon increasing margins through greater volumes.”
Part of the current company optimism is rooted in the fact that Tesla has risen to #1 in the auto industry in terms of operating margin.