Tesla fell short of market expectations for its third-quarter vehicle deliveries due to production disruptions caused by planned factory shutdowns. This unexpected setback led to a 3.7% decline in Tesla’s shares in pre-market trading.
During the third quarter, Tesla delivered 435,059 vehicles, which represented a decline of nearly 7% compared to the previous quarter. Despite this, the company stated that its full-year goal of delivering 1.8 million vehicles remained unchanged.
In terms of production, Tesla manufactured 430,488 vehicles in the third quarter. This figure marked a decrease from the 479,700 vehicles produced in the second quarter and an increase from the 365,923 vehicles produced in the same quarter the previous year.
Market analysts had anticipated Tesla to deliver around 454,100 vehicles, as per a consensus of 19 analysts polled by Visible Alpha. Another estimate, compiled by eight analysts from LSEG, projected an even higher figure of 459,949 vehicles, with estimates ranging from 442,000 to 511,405.
Some experts believe that the slowdown in deliveries during the third quarter may be temporary, with the possibility of a rebound in the fourth quarter. This optimism is driven by expectations that factory upgrades could allow Tesla to introduce refreshed models that can better compete with offerings from American rivals like Ford and Chinese manufacturers like BYD. For example, an updated Model 3 with higher pricing is set to begin deliveries in China and Europe in the fourth quarter, and a Cybertruck launch event is also anticipated later this year.
During the third quarter, Tesla implemented price cuts on its premium Model S and Model X vehicles, ranging from 14% to 21% in key markets such as China and the United States. The company also increased discounts on its popular Model 3 and Model Y, with incentives exceeding $5,000 in the United States. In addition, Tesla adjusted prices for the Model Y and offered other promotions in China.
Investors and analysts are now looking ahead to Tesla’s third-quarter financial results, which are scheduled to be reported on October 18. These results will provide further insights into the company’s financial performance and outlook amid ongoing challenges and opportunities in the electric vehicle market.