In the fourth quarter of 2018, Tesla produced and delivered at the rate of nearly 1,000 vehicles per day, setting new company records for both production and deliveries.
Production in Q4 grew to 86,555 vehicles, 8% more than the company’s prior all-time high in Q3. This included:
- 61,394 Model 3 vehicles, 15% more than Q3.
- 25,161 Model S and X vehicles, consistent with Tesla’s long-term run rate of approximately 100,000 per year.
Q4 deliveries grew to 90,700 vehicles, which was 8% more than the 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. To put our growth into perspective, we delivered almost as many vehicles in 2018 as we did in all prior years combined.
Q4 Model 3 deliveries were limited to mid- and higher-priced variants, cash/loan transactions, and North American customers only. More than three quarters of Model 3 orders in Q4 came from new customers, rather than reservation holders.
The company is planning to open new opportunities to continue the growth of Model 3 sales by expanding to international markets, introducing lower-priced variants and offering leasing. International deliveries in Europe and China will start in February 2019. Expansion of Model 3 sales to other markets, including with a right-hand drive variant, will occur later in 2019.
1,010 Model 3 vehicles and 1,897 Model S and X vehicles were in transit to customers at the end of Q4, and will be delivered in early Q1 2019. Tesla’s inventory levels remain the smallest in the automotive industry, and they were able to reduce vehicles in transit to customers by significantly improving the company’s logistics system in North America.
The electric car manufacturer is also taking steps to partially absorb the reduction of the federal EV tax credit (which, as of January 1st, dropped from $7,500 to $3,750). Starting 2019, Tesla will be 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.
Combined with the reduced costs of maintenance and of charging a Tesla versus paying for gas at the pump – which can result in up to $100 per month or more in savings, Tesla’s vehicles have become even more affordable than similarly priced gasoline vehicles.