Tesla posts first quarterly increase in deliveries, but shares slump with investors hoping for more
Low interest financing, sweet lease deals and free charging boosted Tesla’s global deliveries in the third quarter, the first increase this year for the electric vehicle maker
Low interest financing, sweet lease deals, price cuts and free charging boosted Tesla’s global deliveries in the third quarter, the first increase this year for the electric vehicle maker.
The Austin, Texas, company said Wednesday that it delivered 462,890 vehicles from July through September, bolstered by loans as low as 1.99%, and $299 monthly leases on the Model 3, its least expensive vehicle. It delivered 435,059 vehicles during the same period last year.
The figures for July through September came in slightly higher than analyst estimates of 462,000 for the period, according to data provider FactSet.
However, shares of Tesla Inc. dropped sharply in morning trading, down nearly 4%.
The deliveries were “good and a step in the right direction,” wrote Dan Ives of Wedbush, but that there would be pressure on the company's stock because investors had been hoping for even better.
“Overall, this is a clear improvement from the first half and we believe getting in the range of 1.8 million for the year is still the key and important bogey,” Ives said.
Tesla has struggled much of the year to sell its aging model lineup as growth in electric vehicle sales in the U.S. and Europe slowed due to concerns with range, price and the ability to charge on trips.
Falling sales early in the year led to once-unheard of discounts for the automaker, cutting into its industry leading profit margins. Analysts estimated that Tesla’s average vehicle sales price was $42,500 for the third quarter, the lowest price in four years.
The sales decline likely will pull down
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