Electric Vehicle Giant Sees Slump in Stock Price After Quarterly Report
Tesla’s latest quarterly report on vehicle production and deliveries has sent its stock tumbling, with a 3.5% decline in premarket trading. The company’s total deliveries for Q3 2024 stood at 462,890, slightly below analysts’ expectations of 463,310. This marks a modest increase from the 435,059 deliveries reported in the same period last year.
Despite the slight miss, Tesla’s production numbers remained strong, with 469,796 vehicles manufactured in Q3 2024. However, the company faces intensifying competition in the electric vehicle market, particularly in China, where rivals like BYD and Geely are gaining ground.
In the US, Tesla’s dominance is being challenged by emerging players like Rivian, as well as established automakers Ford and General Motors, which are ramping up their electric vehicle sales. GM reported a 60% increase in EV sales for Q3, although its electric business still lags far behind Tesla’s.
Tesla’s executives have tempered expectations for delivery growth in 2024, citing increased competition and the need to balance production with demand. The company has also been investing heavily in energy storage products, deploying 6.9 GWh in Q3.
Despite the stock’s recent slump, Tesla’s brand remains strong, with the company selling more battery electric vehicles in the US than any other manufacturer. However, CEO Elon Musk’s controversial antics on social media have taken a toll on the brand’s reputation.
Investors will be closely watching Tesla’s upcoming earnings report, which is expected to provide insight into the company’s profit margins. The company has been offering attractive financing options and incentives to drive sales volume, and its marketing event on October 10 is highly anticipated.
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