Tesla stock jumps 2.7% in morning trading.
Tesla posted its third-quarter vehicle production and delivery report for 2023. Wall Street was expecting Tesla deliveries to reach 461,640 for the period ending Sept. 30, according to a consensus of analysts polled by StreetAccount. An independent Tesla researcher, who uses the handle Troy Teslike on social media, was expecting deliveries of 441,000 vehicles.
Analysts noted that the deliveries miss was tied to longer than expected downtimes of factories in Shanghai and Austin. Wedbush Securities analyst Dan Ives said the downtimes were likely to have led to ~20k units shift into Q4. "With price cuts mostly in the rear view mirror providing stability in prices going forward, we believe Tesla is now set to be entering the next stage of growth for the company globally with the Model 3 refresh front and center in China and Cybertruck production set to kick off beginning around Halloween," he noted. Crucially, Tesla remains committed to the target of 1.8 million deliveries for the year.
During the previous quarter, Tesla reported total deliveries of 466,140 and total vehicle production of 479,700. During the same period in 2022 Tesla reported total vehicle production of 365,923 and deliveries of 343,830.
On its last earnings call in July, CEO Elon Musk cautioned that Tesla would “continue to target 1.8 million vehicle deliveries this year,” but expected third-quarter production to decline slightly following “summer shutdowns for a lot of factory upgrades.”
Tesla’s head of investor relations, Martin Viecha, sent out a company-compiled consensus to select investors, some of whom shared it publicly on social media. That number showed Wall Street was expecting around 455,000 total deliveries, with a median estimate of 453,128 deliveries for the quarter, based on 25 analysts’ estimates.
Tesla groups deliveries into two categories, Model S and X vehicles, and Model 3 and Y vehicles, but doesn’t report individual model or region-specific numbers. Deliveries are the closest approximation to vehicles sold reported by the company.
Tesla slashed prices throughout the third quarter on its inventory vehicles and existing models, which put pressure on competitors to follow suit.
Tesla also revealed a revamped version of its Model 3 sedan, dubbed the “Highland,” with both new exterior and interior features and started selling it in some regions outside the U.S. The interior for the refreshed Model 3 includes touchscreen displays for rear seat passengers and ventilated seats, among other items. The vehicle is sold with a long-range battery option that gets about 390 miles, or 629 km, per charge.
In August, former Zachary Kirkhorn announced he was stepping aside as CFO, and the company said Chief Accounting Officer Vaibhav Taneja would now serve both roles. Tesla’s next earnings call will be the first with Taneja in the CFO seat.