Tesla Misses Estimates for Quarterly Deliveries; Stocks fall

Tesla vehicles will go on sale on May 23, 2023 at the Tesla facility in Fremont, California, USA. REUTERS/Carlos Barria/File Photo Get license rights

Oct 2 (Reuters) – Tesla ( TSLA.O ) missed market estimates for third-quarter deliveries on Monday as planned upgrades at its factories forced production shutdowns, sending its shares down 2.4% in early trade.

The electric-vehicle maker delivered 435,059 vehicles in the three months to September 30, down nearly 7% from the previous quarter, but said its target to deliver 1.8 million vehicles this year remained unchanged.

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

The electric vehicle market in the US has seen a slowdown, but there are signs of growth, Canalys Research said in a report.

“While Tesla will be the dominant force in the US EV market by 2023, demand for a wider range of EV options is growing to satisfy growing consumer interest in electric vehicles,” said Ashwin Amberkar, analyst at Market Research Institute.

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

Reuters Graphics

Some analysts believe the factory improvements could spark a rebound in deliveries in the fourth quarter by allowing Tesla to refresh its lineup with models that can better compete with offerings from U.S. rivals such as Ford and BYD in China.

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

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In the third quarter, Tesla cut prices of its premium Model S and Model X by 14-21% in key markets China and the US.

It raised discounts on its flagship Model 3 and Model Y by up to $5,000 in the US, while slashing Model Y prices and offering other offers in China.

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

Aditya Soni and Akash Sriram report in Bangalore; Editing by Arun Koyur and Anil de Silva

Our Standards: Thomson Reuters Trust Principles.

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