Tesla Shares Tumble 5% After Missing Quarterly Delivery Estimates

Reuters10-02

Tesla missed expectations for third-quarter deliveries on Wednesday, hurt by stiff competition from rivals in China and Europe, sending shares of the world's most valuable automaker down 5% in morning trading.

The EV maker handed over 462,890 vehicles in the three months to Sept. 30, up 6.4% from the preceding quarter.

Wall Street on average had expected the Elon Musk-led company to deliver 469,828 vehicles, according to 12 analysts polled by LSEG.

The company has to deliver a record 516,344 vehicles in the fourth quarter to meet last year's delivery figure of 1.81 million units. A shortfall could result in Tesla recording its first annual drop in deliveries.

Rising competition in the United States, a lack of European subsidies and slowing consumer spending in China were a drag on Tesla's quarterly deliveries.

Tesla is contending with fierce competition from Chinese automakers like BYD and Xpeng, which are aggressively expanding their presence in the world's largest automotive market, with help from local government subsidies.

However, BYD's sales of 443,426 battery electric vehicles in the third quarter were lower than those of Tesla as the Chinese EV giant focused on plug-in hybrid vehicles, whose deliveries jumped more than 75% in the latest quarter.

In July, BMW led the European battery electric vehicle market for the first time, beating Tesla, which has been losing market share to domestic firms, according to a report by JATO Dynamics.

The price cuts and incentives have also squeezed Tesla's profit margins.

The company is expected to unveil its robotaxi product at a closely watched event on Oct. 10 in Los Angeles as it attempts a shift in strategy, with a focus on AI-powered autonomous technologies.

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Comments

  • Dr Rck
    10-03
    Dr Rck
    To reiterate, this Friday there will be again a buying frenzy of TSLA leading to the 10/10 event... expected no are derived from analysts estimation not TSLA internally which to them is probably right on target as long as there 5 to 10% yoy and mom growth!!
  • Dr Rck
    10-02
    Dr Rck
    To be fair, overall TSLA has made improvements year on year and month on month, despite challenging business environments! And with the improved workforce, I am sure its profit margin will have improved as well on the next report! Plus batteries sales and the upcoming robotaxi and Optimus announcement, the stock will hit at least $260 after the news! 
  • a4xrbj1
    10-02
    a4xrbj1
    Said it already 3 months ago that over 1.8 million that Elon Musk promised in Q2 analyst call is a pipe dream. It will be tough for Tesla to have 1.75 million deliveries in 2024. Besides the pressure on their margin because they are only able to sell their aging cars with 0% interest against all the modern Korean and Chinese EV's. I'd even go so far to predict that Tesla will have trouble making 470k deliveries in Q4. Elon knows that his car business is gone, that's why he's spinning the Robotaxi and Robcs story. But different than his EV business where he was the first and only in the market, both Robotics and Robotaxis are crowded by long time players already. Tesla at $175 at the end of the year, which is still way too overrated for their profit.
  • tian3479
    10-02
    tian3479
    Hello tessla youare buitifull
  • Mxxww
    10-02
    Mxxww
    short of 400 cars only LOL
  • Tiyenger
    10-02
    Tiyenger
    Bye bye tesla 👋 
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