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A week after Tesla’s AI Day, which showed off its Optimus humanoid robot prototype and AI advances in driver-assist software, the company is delivering its Q3 cars for the first time. The deliveries follow a Friday presentation at which the company outlined plans for new AI products, including the Semi. The event was also largely a recruiting pitch for engineers. Tesla has a long way to go, but the Q3 deliveries are a sign that the company’s AI-driven future is here.
Model 3 and Model Y continue to dominate
While Model 3 and Model Y have already sold out their production volumes in Q2, the new car’s popularity has helped it climb up the popularity charts. In April, the Model Y surpassed the Model 3 in sales, selling 16,232 units compared to 14,980. Currently, the Model Y sits third in EV popularity, behind the Wuling HongGuang Mini EV from the GM-SAIC-Wuling venture in China.
In the third quarter, Tesla delivered a record 241,300 vehicles, surpassing its prior-quarter delivery total of 201,250 units. The company does not release individual model numbers, but the Model 3 and Model Y continue to dominate deliveries. The lopsided breakdown of deliveries highlights ongoing issues in the auto industry.
Q3 deliveries are boosted by strong production levels. The automaker has recently begun ramping up its production at two new factories in Texas and Germany. These new facilities are expected to contribute significantly to the company’s volume in the second half of the year. While strong production levels are certainly helping, demand is the other big factor in the Q3 sales numbers.
Model S and Model X face growing competition
The Tesla Model S and Model X have faced growing competition from other EV manufacturers, particularly in the premium EV segment. While the company once had virtually unrivaled market share in this segment, it is now seeing a drop in demand from high-end luxury EV buyers. New premium EVs like the Mercedes EQS, Porsche Taycan, and Lucid Air have all entered the market and are competing with Tesla for luxury EV buyers.
Tesla has also introduced new manufacturing technologies and techniques that the automotive industry has not yet adopted. For example, the Model S uses aluminum spot welding systems for the body of the car, which is a relatively new technique. Moreover, it features unique design features such as a panoramic roof, retractable exterior door handles, and a 17-inch display screen. These features present unique manufacturing challenges.