“Tesla Q3 Deliveries Disappoint, Stock Drops 6%”
Source: Davit Kirakosyan
Tesla Shares Dip as Q3 Delivery Figures Meet Estimates but Disappoint Investors
Shares of electric vehicle maker Tesla (NASDAQ:TSLA) experienced a significant intra-day drop of over 6% today. The slump followed the company’s disclosure of its third-quarter 2024 delivery numbers. Tesla reported deliveries of 462,890 vehicles, a figure that, while aligning with Wall Street analyst projections, fell short of investor expectations for a more substantial beat.
Tesla’s Q3 delivery numbers remained a crucial focal point for investors, who have been closely tracking the company’s performance amid a competitive EV market. The delivery figure serves as a barometer for the company’s production capacity and demand for its electric vehicles.
Breakdown of Tesla’s Q3 Production
In terms of production, Tesla churned out a total of 469,796 vehicles in Q3. The majority of these vehicles—443,668—were from its Model 3/Y lineup. This demonstrates the popularity and demand for these models, which are considered more affordable compared to Tesla’s other offerings. The remaining units, amounting to 26,128, were accounted for by other models, including the luxury sedan Model S, the sports utility vehicle Model X, and the futuristic Cybertruck.
The delivery and production numbers provided by Tesla suggest a slight disparity, signifying that there might be a small number of vehicles produced but not yet delivered.
Analyst Reactions to Tesla’s Q3 Deliveries
Reacting to the Q3 delivery figures, Barclays noted that while the delivery numbers met expectations, investors had been banking on a more notable outperformance. Tesla’s production figures slightly exceeded estimates, but this did little to alleviate the disappointment in the market. The sentiment indicates the high expectations investors have for the EV giant, reflecting the pressure on Tesla to continually outperform.
Oppenheimer analysts, on the other hand, provided a more nuanced viewpoint. They highlighted that weaker demand in Europe was offset by stronger sales in China, hinting at Tesla’s growing influence in the Asian market. The analysts also shifted the focus to Tesla’s upcoming AI Day on October 10. During this event, the company is expected to highlight advancements in robotaxi technology and humanoid robots, potentially offering investors a glimpse into Tesla’s future direction.
Confidence in Tesla’s Full-Year Delivery Target
Wedbush analysts expressed a more positive outlook, describing the Q3 delivery numbers as a step in the right direction. They acknowledged the missed opportunity for a stronger beat but remained confident in Tesla’s ability to reach its full-year target of 1.8 million deliveries. This target was set despite hurdles earlier in the year, including supply chain issues and semiconductor shortages that have plagued the auto industry.
The analysts also anticipate further clarity on Tesla’s outlook during its Q3 earnings call on October 23. This event is likely to provide more detailed insights into the company’s financial performance and future plans.
Long-Term Optimism Despite Near-Term Pressure
Despite the near-term pressure on Tesla’s stock due to the delivery results, analysts remain optimistic about the company’s long-term potential. This optimism is particularly centered around Tesla’s advancements in AI and autonomous driving technology, areas in which the company has been investing heavily.
In conclusion, while Tesla’s Q3 delivery figures may have disappointed some investors, the company’s strong production numbers and the optimistic outlook for its AI and autonomous driving technology suggest a promising future. As the EV market continues to expand, Tesla’s ability to meet delivery targets and innovate in technology will play a crucial role in its sustained growth.