Electric vehicle giant Tesla (TSLA) reported its third quarter (Q3) delivery figures on Wednesday, revealing a shortfall in anticipated numbers due to planned downtime at select manufacturing plants, pushing future production into the fourth quarter.
According to Tesla’s statement, the company successfully delivered 435,059 vehicles worldwide during the third quarter. Of these, approximately 419,000 were comprised of the popular Model Y and Model 3, with an additional 16,000 higher-end Model X and Model S vehicles. Wall Street consensus estimates, however, had set deliveries at a higher mark of 456,722.
During the same period, Tesla’s global production stood at 430,488 vehicles, falling short of industry estimates, which projected 461,347 units. This disparity between production and deliveries suggests a backlog of Q2 deliveries, although the automaker refrained from providing specific commentary on this matter.
Tesla officials attributed the sequential volume decline to scheduled downtimes for vital factory upgrades. They emphasized that the company’s 2023 volume target of approximately 1.8 million vehicles remains unchanged. Plans to temporarily halt production at the Giga Shanghai plant for essential upgrades were also announced, along with similar measures at Giga Austin to facilitate the ramp-up for the highly anticipated Cybertruck, as previously mentioned in their Q2 earnings call.
Following the release of these figures, Tesla’s shares initially experienced a dip but swiftly rebounded into positive territory during early trading hours. Wedbush analyst Dan Ives weighed in, noting that while the numbers did not showcase any extraordinary performance, Tesla’s steadfast commitment to the 1.8 million delivery target for 2023, coupled with projected production gains, bodes well for the company’s future prospects. Ives additionally underscored that investors are likely pinning their hopes on a robust fourth quarter performance to offset the Q3 shortfall.
Tesla is slated to unveil its third quarter earnings on October 18th, after the close of the market, with the subsequent analyst conference call scheduled to commence at 5:30 p.m. ET. The impending launch of the revamped Model 3 sedan and the imminent debut of the long-awaited Cybertruck will play pivotal roles in Tesla’s pursuit of its 2023 delivery objective.
In conclusion, the Q3 delivery targets of Tesla, though not met in full, underscore the company’s unwavering commitment to its long-term vision, positioning them to navigate challenges and drive towards a promising future in the electric vehicle market.
Source: Yahoo Finance
