Tesla achieves record high deliveries in the fourth quarter, but unlucky year doesn't boost stock price?

While last year saw the seven major U.S. tech giants challenging historical highs, Tesla's stock price appeared weak, needing to rise by 67% to reach its historical high of $414, with a significant gap from last July's peak of $299. Tesla announced yesterday that its electric vehicle deliveries in the fourth quarter reached a record high, but it was surpassed by BYD and faced an odor crisis in Australia. Even its electric pickup truck was criticized for being too sturdy. Is Tesla experiencing a run of bad luck recently?

Tesla Meets Full Vehicle Delivery Goals, But Falls Behind BYD in Q4

According to a report by Reuters, Tesla achieved a record high in electric vehicle deliveries in the fourth quarter, delivering nearly half a million vehicles at 494,989, surpassing market expectations and successfully reaching its 2023 full-year target of 1.8 million vehicles. However, in Q4, Tesla was outperformed by BYD in China, which delivered 520,000 vehicles.

Stink Bug Crisis Forces Tesla Vehicles to Be Rejected in China

The recent stink bug crisis has affected Tesla as well. According to drive.com.au, a ship carrying Tesla electric vehicles was forced to leave Australia after stink bugs were found on board. Authorities stated that the stink bugs could pose a significant threat to Australia's environment and human health, leading to the decision to reject the shipment and return all new cars back to Shanghai.

Is the Cybertruck Too Sturdy to Be Safe?

After the launch of Tesla's electric pickup truck, the stainless steel Cybertruck, it was involved in its first accident at the end of last year, with the other vehicle suffering severe damage.

According to a report by New York Post, last Thursday, a Toyota Corolla collided head-on with the all-stainless steel Cybertruck, resulting in a devastating crash, although fortunately, the driver was unharmed.

While the Cybertruck remained unscathed, safety experts have expressed concerns about the potential dangers of its steel frame and sharp design since Tesla's November 30th unveiling event. The truck's cold-rolled stainless steel body panels have been praised for their ability to absorb impact forces in accidents. Tesla has stated that the front and rear structures of the vehicle help dissipate energy, and the doors can withstand most of the impact load in side collisions.

However, there seems to be another concern on many minds, as former Insurance Institute for Highway Safety President Adrian Lund stated:

If they really use thick stainless steel to make the vehicle's shell very hard, then when people hit their heads on it, it will cause greater harm to them.

Musk Emphasizes Tesla is more than just a car company

Despite negative views on Tesla lowering margins to meet delivery targets, Tesla CEO Musk stated during the Q3 earnings call that Artificial Intelligence (AI) could "make Tesla the most valuable company in the world to date," surpassing trillion-dollar market cap companies like Apple, Microsoft, Alphabet, Amazon, and Nvidia.

Ark Invest's founder Cathie Wood is also bullish on AI's development, estimating that by 2030, AI could boost knowledge worker productivity by over 4 times. She remains optimistic about stocks like Tesla, even setting a target of $2,000 per share by 2027.

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