TLDR:
- Tesla delivered 462,890 vehicles in Q3 2024, slightly below analyst expectations
- The company’s stock fell despite the delivery numbers beating some estimates
- Increasing competition, especially in China, is putting pressure on Tesla
- Tesla’s brand has faced challenges in the US due to CEO Elon Musk’s controversial statements
- Investors are focusing on profit margins ahead of Tesla’s Q3 earnings report
Tesla, the electric vehicle giant, reported its third-quarter delivery and production numbers for 2024 on Wednesday, revealing a slight miss on analyst expectations.
The company delivered 462,890 vehicles in the quarter, falling short of the 463,310 deliveries analysts had predicted according to FactSet StreetAccount estimates. This news led to a drop in Tesla’s stock price, with shares falling as much as 3.7% following the announcement.
The delivery numbers, while representing an increase from the 435,059 vehicles delivered in the same quarter last year, failed to meet the heightened expectations of some investors. Tesla’s own company-compiled consensus, based on a survey of 30 analysts, had suggested expectations of 461,978 deliveries, which the actual figures did beat.
Production numbers for the quarter were more robust, with Tesla manufacturing 469,796 vehicles. This marks a significant increase from the 410,831 vehicles produced in the second quarter of 2024.
Despite the delivery miss, Tesla’s stock had performed well in the lead-up to this report, climbing 32% in the third quarter and erasing its losses for the year.
The company’s shares are now up almost 4% in 2024, though this still lags behind the Nasdaq’s 19% gain for the year.
Tesla continues to face increasing competitive pressure, particularly in the Chinese market. Companies like BYD, Geely, Li Auto, and Nio are posing significant challenges to Tesla’s dominance in the world’s largest electric vehicle market.
In the United States, while Tesla remains the leader in battery electric vehicle sales, competitors such as Rivian, Ford, and General Motors are gradually increasing their electric vehicle output.
Ford reported sales of 23,509 EVs in the third quarter, marking a 12% increase from the prior year. General Motors saw an even more substantial rise, with EV sales up about 60% from a year earlier, though their total of 32,100 units still represents a fraction of Tesla’s deliveries.
Tesla’s brand has faced some challenges in the United States, partly due to controversial statements made by CEO Elon Musk on social media. These issues, however, do not seem to have significantly impacted the company’s sales figures.
Looking ahead, investors will be keenly focused on Tesla’s profit margins when the company releases its full third-quarter earnings report later this month.
The company has been offering attractive financing options and various incentives to drive sales volume in recent months, both in China and the United States. These strategies, while potentially boosting delivery numbers, may put pressure on the company’s margins.
Tesla is also preparing for a marketing event on October 10, where it is expected to showcase the design of a “dedicated robotaxi.” This event comes as competitors in the autonomous vehicle space, such as Waymo and Pony.ai, have already begun operating commercial robotaxi services.
The company’s energy storage business also saw growth, with Tesla reporting the deployment of 6.9 GWh of energy storage products in the quarter. This aspect of Tesla’s business, while often overshadowed by its electric vehicle sales, continues to be a significant part of the company’s overall strategy.
Tesla has not provided specific guidance for its 2024 deliveries, but executives have indicated that they expect a lower delivery growth rate this year compared to last.
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