Tesla records initial quarterly surge in deliveries, stocks decline as investors expect more
Date
10/3/2024 5:49:10 AM
(MENAFN) Low-interest financing, attractive lease offers, price reductions, and complimentary charging incentives significantly increased Tesla's global vehicle deliveries in the third quarter, marking the first rise for the electric vehicle manufacturer this year.
The company, headquartered in Austin, Texas, announced on Wednesday that it delivered 462,890 vehicles between July and September, supported by loans with rates as low as 1.99 percent and monthly leases on the Model 3, its most affordable option, starting at USD299. In comparison, Tesla delivered 435,059 vehicles during the same timeframe last year.
The quarterly figures slightly surpassed analyst expectations of 462,000 deliveries, according to FactSet data. However, despite the positive delivery numbers, Tesla Inc. shares fell sharply in morning trading, dropping nearly 4 percent.
Dan Ives of Wedbush described the delivery numbers as “good and a step in the right direction,” while noting that investor expectations were high, which may exert pressure on the company's stock. He emphasized the importance of aiming for approximately 1.8 million deliveries for the year as a significant benchmark. Throughout the year, Tesla has faced challenges in selling its older model lineup, as the growth of electric vehicle sales in the U.S. and Europe has slowed amid concerns regarding range, pricing, and charging accessibility during trips.
The earlier decline in sales prompted unprecedented discounts for the automaker, impacting its industry-leading profit margins. Analysts estimate that Tesla’s average vehicle sales price for the third quarter was USD42,500, marking the lowest price in four years. This decline in sales is expected to negatively affect the company’s earnings for the third quarter, which will be announced on October 23. Tesla's struggle is compounded by increasing competition from both traditional and new automakers seeking to capture a share of its market.
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