Tesla vehicles are on sale at a Tesla factory in Fremont, California, USA on May 23, 2023. Portal/Carlos Barria/File Photo acquire license rights
Oct 2 (Portal) – Tesla (TSLA.O) missed market estimates for third-quarter deliveries on Monday as planned upgrades at its factories to introduce a newer version of its mass-market Model 3 sedan led to production halts.
Some analysts believe the upgrades could lead to a rebound in deliveries in the fourth quarter as Tesla could refresh its lineup with models that could better compete with offerings from U.S. rivals such as Ford and BYD in China.
Deliveries of the updated and more expensive Model 3 compact sedan are expected to begin in the fourth quarter, while a Cybertruck launch event is also planned later this year.
The electric vehicle maker, which will report quarterly results on October 18, delivered 435,059 vehicles in the three months ended September 30, down almost 7% from the previous quarter, but maintained its target of 1.8 million vehicles this year to deliver.
An LSEG survey of eight analysts showed estimated deliveries of 459,949 vehicles, with the lowest at 442,000 and the highest at 511,405.
Shares of the electric vehicle maker reversed course, rising slightly after falling nearly 3% following news of the supply disruptions.
Tesla has also aggressively cut prices to counter the impact of a slowing electric vehicle market while fending off competition from upstarts and incumbents.
In the third quarter, Tesla cut prices for its Model S and Model X premium cars by up to 21% in its main markets of China and the United States.
Additionally, discounts on Model 3 and Model Y were increased in the US, while Model Y prices were reduced and other incentives were offered in China.
“They will keep the pressure on their competitors,” said Thomas Martin, senior portfolio manager at Globalt Investments, who holds Tesla shares, adding that the company could cut prices even further.
Portal graphics
Tesla produced 430,488 vehicles in the third quarter, up from 479,700 in the previous three-month period.
Meanwhile, electric pickup truck maker Rivian Automotive (RIVN.O) reported third-quarter deliveries above analysts’ estimates and reiterated its annual production target of 52,000 vehicles.
“While Tesla remains a dominant force in the U.S. electric vehicle market in 2023, there is increasing demand for a broader range of electric vehicle options to meet growing consumer interest in electric vehicles,” said Ashwin Amberkar, analyst at Canalys Research.
Deliveries of Tesla’s Model S and Model X premium vehicles rose to around 16,000 units in the third quarter. However, their deliveries only account for about 4% of the total.
Reporting by Aditya Soni and Akash Sriram in Bengaluru; Edited by Arun Koyyur and Anil D’Silva
Our standards: The Trust Principles.
Acquire license rights, opens new tab