Tesla deliveries slide as factory closures slow production
Tesla shipped 435,059 cars globally in the third quarter, as factory downtime led to its first delivery decline in more than a year.
The results, posted on Monday, missed expectations. Several Wall Street analysts had slashed their delivery estimates in recent days, and the consensus compiled by Bloomberg fell to 456,722 on Friday. Tesla delivered 466,140 cars in the second quarter.
A Tesla Model 3 at the Munich Motor Show last month. Bloomberg
The electric-vehicle maker signalled it would deliver fewer cars in the period as it prepared its factories to make a refreshed Model 3 sedan and the yet-to-be-released Cybertruck. Analysts still expect Tesla to produce and sell more than 1.8 million cars in 2023, a record high.
“Our 2023 volume target of around 1.8 million vehicles remains unchanged,” the company said in a statement.
After tumbling more than 2 per cent at the open, Tesla shares reversed and were 0.8 per cent higher near 11.15am in New York.
Tesla took steps to boost sales so far this year, which have helped keep shipments up amid factory downtime and high inflation. It’s been slashing prices of its models all year, with markdowns as large as 34 per cent for the Model X.
Tesla doesn’t break out sales by region, but the US and China are its largest markets and the bulk of sales were of the Model 3 sedan and Y crossover. Tesla said it made 430,488 vehicles during the quarter.
The softer sales this quarter will likely weigh on earnings. Tesla will post its financial results for the third quarter of 2023 after market close on October 18.
The company makes the Model S, X, 3 and Y at its plant in Fremont, California. The Shanghai plant produces the Model 3 and Y. Newer plants in Berlin and Austin make the Model Y.
Bloom
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