(Reuters) – Tesla on Tuesday reported fourth-quarter deliveries ahead of analysts’ estimates after a push to deliver more Model 3 electric cars before some variants of the compact sedan lose federal tax credits in the new year under the Inflation Reduction Act (IRA).

The company’s shares rose about 1% in premarket trading.

Tesla, the world’s most valuable automaker, delivered a record number of vehicles in the fourth quarter, helping the company hit its 2023 target of 1.8 million.

The company handed 484,507 vehicles in the last three months of the year, compared with estimates of 473,253 units, according to 14 analysts polled by LSEG.

Tesla delivered 461,538 Model 3 cars and Model Y sports utility vehicles, while it handed about 23,000 units of its other models.

(Reporting by Akash Sriram in Bengaluru; Editing by Shounak Dasgupta)

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