Tesla's Slight Delivery Beat Fails to Ignite Stock as Investor Expectations Weigh
AInvestThursday, Oct 3, 2024 12:00 am ET
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Tesla Inc. reported a third-quarter vehicle delivery figure that slightly exceeded expectations, though its stock did not see a bullish response due to elevated market anticipation leading up to the report. The company delivered 462,890 vehicles in the quarter, surpassing the analyst average estimate of 462,000 tracked by FactSet. The Model 3 and Model Y were the predominant contributors, with combined deliveries reaching 439,975 units.

Despite the delivery numbers marginally surpassing estimates, investor sentiment seemed tepid. Prior to the release, analysts had expressed optimism about Tesla's delivery prospects, contrasting with previous quarters when demand concerns prevailed. A Barclays analyst had noted that investors might have expected even higher deliveries, estimating 470,000 units himself, which was more than the actual results.

Following a substantial 20% stock rise over the last month, Tesla shares declined by 3.49% on Wednesday upon the release of the data. This delivery announcement serves as an early indicator of actual performance ahead of Tesla's detailed financial results scheduled for October 23.

While delivery figures offer insights into demand, they don't encapsulate the full financial picture. Investor focus also remains on Tesla's profit margins, which will be revealed in the upcoming financial report. Recent analyses suggest that Tesla's profit trajectory might stabilize or even decrease throughout the remainder of the year.

Tesla's production data for the quarter showed a total of 469,796 vehicles produced, marking an increase from the 410,831 vehicles produced in the second quarter. While the third quarter's numbers reflect growth both annually and sequentially, they fall short of the company's record production and delivery figures from the previous year's fourth quarter.

Analysts have noted factors such as import tariffs potentially impacting delivery numbers in Europe and the U.S. Additionally, a ramp-up in Cybertruck production could affect overall performance. However, potential offsets could arise from enhanced raw material logistics and factory efficiencies.

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