Tesla vs. Ford: Q4 vehicle deliveries and EV write-down

What happened: Tesla's Q4 vehicle deliveries slumped 16% YoY to 418,227 units, marking a significant slowdown in its growth trajectory. Meanwhile, Ford absorbed a $10.7B write-down on its EV segment, reflecting the high costs and intense competition in the electric vehicle (EV) market.

Market impact: The slowdown in Tesla's deliveries and Ford's substantial write-down have raised concerns about the sustainability of EV growth and profitability. This narrative is particularly relevant for other automakers and EV startups, as it underscores the challenges in transitioning to electric vehicles. Investors are now reassessing their positions in these companies, with Tesla's stock down 65% from its peak and Ford's stock down 40% in the past year.

What to watch next: Tesla's Q1 2023 vehicle delivery numbers, scheduled to be released in early April, will provide insight into whether the Q4 slowdown was a one-off or a trend. Additionally, Ford's Q1 earnings, due in late April, will offer more clarity on the company's EV strategy and the path to profitability. Lastly, the evolution of EV demand and pricing in key markets like California will be crucial to monitor, as it could signal a broader shift in consumer behavior.