Electric Vehicle Giant Sees Stock Plummet After Disappointing Q3 Delivery Numbers
On Wednesday, Tesla’s third-quarter delivery figures fell short of expectations, causing its stock to plummet by over 5% in early trading. Despite a 6.4% quarter-over-quarter increase, the company’s 462,890 vehicle deliveries failed to meet Wall Street’s projected 463,897. Notably, this marks a decline from the 466,000 EVs delivered during the same period last year.
The Model 3 and Model Y accounted for the majority of Tesla’s total deliveries, with a combined 439,975 units. Prior to the release of these numbers, Tesla’s stock had been on an upward trend, driven by excitement surrounding its upcoming robotaxi event and promising sales data from China. However, concerns about the company’s annual vehicle growth rate, which has been slowing, have been ongoing.
Tesla faces intense competition in China from domestic automakers BYD and Xpeng, which has led to recent price cuts and subsequent profit margin squeezes. The company’s robotaxi event, scheduled for October 10, is expected to be a crucial moment in its future plans for autonomous driving and artificial intelligence. According to Wedbush analyst Dan Ives, this event will mark a new chapter in Tesla’s growth story.
Tesla is set to report its third-quarter earnings on October 23. As investors await this announcement, the company’s ability to navigate the increasingly competitive EV market will be closely watched.
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