In a surprising turn of events, Tesla’s third-quarter delivery figures have fallen short of market expectations. Upgrades at their factories, causing production pauses, led to a 2.4% dip in the company’s shares during the initial hours of trading.
Tesla reportedly confirmed the delivery of 435,059 vehicles from July to September. This figure showcases a 7% decline from the numbers reported in the previous quarter. Nonetheless, the electric car giant remains optimistic, holding steadfast to their annual target: delivering a whopping 1.8 million vehicles.
Contrasting these figures, an LSEG poll, surveying eight analysts, had pegged the estimated deliveries to be 459,949 vehicles. The estimates varied, with the lowest being 442,000 and the most optimistic at 511,405.
Ashwin Amberkar, an analyst from Canalys Research, provided insights, “While Tesla remains a dominant force in the US EV market for 2023, there is an increasing demand for a wider range of EV options to satisfy the growing consumer interest in electric vehicles.”
Despite the current slump, Tesla’s production still boasts impressive figures. With 430,488 vehicles manufactured this quarter, they surpassed their previous year’s third-quarter output of 365,923 vehicles.
Some industry insiders are hopeful, speculating that the recent factory upgrades might pave the way for a resurgence in deliveries by the year’s end. These changes might enable Tesla to introduce revamped models, positioning them to lock horns with competitors like Ford in the U.S. and BYD in China.
The upcoming quarter holds promise with Tesla gearing up to release its updated Model 3. This vehicle, though priced higher, is set to commence deliveries in Europe and China. Additionally, the eagerly anticipated Cybertruck launch event is slated for later this year.
In a bid to maintain market traction, Tesla announced price cuts ranging from 14-21% for their luxury Model S and Model X in key markets, including the U.S. and China. Moreover, they’ve offered substantial discounts, reaching beyond $5,000, on their primary Model 3 and Model Y in the U.S.
Tesla’s third-quarter results will be disclosed on Oct. 18, shedding more light on their strategic moves and the path ahead.
Graphics courtesy of Reuters.