Tesla Deliveries Fall Below Expectations in Q3, Blamed on Factory Upgrades
Tesla, the global electric vehicle (EV) giant, reported that its deliveries in the third quarter fell short of Wall Street predictions. The company produced 430,488 vehicles and delivered 435,059, marking a 6% drop from the second quarter’s record-setting number.
According to Tesla, the decline can be attributed to planned downtimes for factory upgrades. In Q3, the company delivered 15,985 Model S/X vehicles and 419,074 Model 3/Y vehicles. However, analysts had expected deliveries to reach around 461,000, but were disappointed due to production slowdowns.
Despite the lower-than-expected delivery numbers, Tesla’s stock gained 0.6% and closed at 251.60 on Monday. This positive response from the market suggests that investors may still have faith in the company’s long-term prospects.
Looking ahead, some analysts are hopeful for a strong recovery in the fourth quarter, as well as the expected launch of the Cybertruck. However, others hold a more pessimistic view, pointing to limited volume growth and potential downside risk.
It is worth noting that Tesla reported record global deliveries in the second quarter, surpassing Wall Street forecasts. CEO Elon Musk has set a target of achieving 1.8 million vehicle deliveries in 2023, but he did warn that Q3 production would be lower due to factory upgrades.
Interestingly, the ongoing strike by the United Auto Workers against other automakers is seen as favorable for Tesla. Being a nonunion company, Tesla may benefit from potential customers turning to them as an alternative during the strike.
In terms of stock performance, Tesla ranks fourth in the IBD automaker industry group, with a 95 Composite Rating. While the slightly lower delivery numbers in Q3 may have disappointed some, investors still seem optimistic about the company’s future prospects.
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