November 30, 2023

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Tesla misses quarterly deliveries estimates; Stocks fall

Tesla misses quarterly deliveries estimates;  Stocks fall

Tesla cars are for sale at a Tesla facility in Fremont, California, US, May 23, 2023. REUTERS/Carlos Barria/File Photo Obtaining licensing rights

Oct 2 (Reuters) – Tesla Inc (TSLA.O) failed to meet market estimates for third-quarter deliveries on Monday as planned upgrades at its factories halted production, sending its shares down 2.4% in early trading.

The electric carmaker delivered more than 435,059 vehicles in the three months to September 30, down about 7% from the previous quarter, but said its target of delivering 1.8 million vehicles this year remained unchanged.

An LSEG poll of eight analysts estimated deliveries of 459,949 vehicles, with a low of 442,000 and a high of 511,405.

Canalys Research said in its report that the electric car market has witnessed a slowdown in the United States, although there are signs of growth.

“While Tesla remains a dominant force in the US electric vehicle market for 2023, there is growing demand for a wider range of electric vehicle options to meet growing consumer interest in electric vehicles,” said Ashwin Amberkar, an analyst at the market research firm.

The world’s most valuable automaker produced 430,488 vehicles in the third quarter, compared with 479,700 in the second quarter and 365,923 a year earlier.

Reuters graphics

Some analysts believe the factory upgrades could lead to a rebound in deliveries in the fourth quarter by allowing Tesla to update its lineup with models that can better compete with offerings from American rivals such as Ford and BYD in China.

The updated Model 3 has a higher price tag and deliveries in China and Europe are expected to begin in the fourth quarter, while the Cybertruck is also expected to launch later this year.

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In the third quarter, Tesla reduced the prices of its premium Models S and Model

It also boosted discounts on its base Model 3 and Model Y models by up to more than $5,000 in the United States, while lowering Model Y prices and offering other incentives in China.

The company will announce third-quarter results on October 18.

(Reporting by Aditya Soni and Akash Sriram in Bengaluru; Preparing by Mohammed for the Arabic Bulletin) Editing by Arun Kuyur and Anil D’Silva

Our standards: Thomson Reuters Trust Principles.

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