Data News > Tesla Reports Q3 Sales, Shares Drop Despite Delivery Increase

Tesla Reports Q3 Sales, Shares Drop Despite Delivery Increase

By KlickAnalytics Data Insights  |   October 2, 2024 10:01AM ET

Key Points

- Tesla reported third-quarter sales, leading to a drop in shares.
- The American electric vehicle titan's Q3 car deliveries failed to meet the most bullish Wall Street estimates.
- Despite a 6% increase in deliveries, Tesla's stock price fell.
- Tesla's aggressive pricing in China contributed to a 6% delivery growth.
- Nasdaq ended lower as Tesla, Nvidia, and Apple stocks fell.

Tesla's third-quarter sales report, released on Wednesday, showed a reversal in the slowdown the company had been experiencing. However, this uptick was not enough to calm investors' nerves, leading to a decline in Tesla's shares during early trading.

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Despite reporting a 6% rise in third-quarter car deliveries, Tesla's stock price faltered by 4% as the numbers fell short of the most optimistic Wall Street forecasts. This disappointment impacted the market's perception of Tesla's performance.

Wall Street analysts have set price targets for Tesla stock over the next 12 months, reflecting the company's overall strong performance with a 22.52% increase in the past 30 days. However, September brought volatility to Tesla's stock amid delivery fluctuations.

Tesla's shares dipped by 3.3% premarket after the company posted third-quarter delivery figures that were lower than expected. While Tesla delivered more vehicles in the third quarter compared to the second quarter, it still missed consensus estimates.

Despite beating delivery expectations for the quarter, Tesla's stock faced a downward trend as elevated expectations weighed on investor sentiment. The stock market's response to Tesla's performance showcased the impact of market anticipation on stock prices.

In October, Tesla began with a significant increase in third-quarter deliveries to 462,890 vehicles. This positive start to the month did little to offset the concerns that arose from the delivery figures falling short of estimates.

Tesla's third-quarter vehicle deliveries fell below expectations, with the company attributing the underperformance to incentives and low-cost financing not generating sufficient demand for its older models in a competitive market. This shortfall impacted Tesla's overall sales performance.

The automaker reported a 6.4% gain for the latest quarter, signaling a rebound in electric car demand. Tesla's stock experienced a decline after announcing a total of 462,890 deliveries for the third quarter, reflecting market response to the figures.

Tesla provided an overview of its third-quarter production, deliveries, and energy deployment statistics. The company produced approximately 470,000 vehicles, delivered 463,000 vehicles, and deployed 6.9 GWh of energy storage products during this period.

Amidst Tesla's delivery growth driven by aggressive pricing in China, analysts have encouraged investors to consider a strong buy rating for the stock. The upcoming robotaxi event in October 2024 and the release of Q3 earnings are expected to provide key insights into Tesla's potential growth.

As Tesla's delivery figures are set to be released, analysts anticipate a rebound in demand, particularly due to favorable deals in China. The market response to Tesla's delivery performance will shed light on the company's standing within the electric vehicle industry.

The overall market sentiment, as indicated by the Nasdaq, saw a decline, with key stocks like Tesla, Nvidia, and Apple falling. Despite this, the market remained in the "Greed" zone, highlighting a mix of optimism and caution among investors.

Tesla's third-quarter sales report showcased a mixed performance, with an increase in deliveries but falling short of expectations. The stock market reacted to these figures by driving Tesla's shares lower, reflecting investor concerns about the company's performance amidst a competitive market landscape.

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