Tesla reports record deliveries, but numbers are still shy of analysts' targets


Tesla Inc. reported record quarterly deliveries on Sunday. but the number still disappointed analysts.

Tesla said it produced over 365,000 vehicles in the just-completed third quarter, and made more than 343,000 deliveries. That was a significant rebound from the second quarter, when it reported nearly 259,000 vehicles built and 255,000 deliveries, with production stunted by Chinese factory shutdowns due to COVID-19 outbreaks in the spring.

Wall Street analysts expected more last quarter, though, forecasting about 371,000 deliveries, according to FactSet data.

The 22,000-vehicle spread between production and deliveries was significantly higher than usual — it was about 4,000 the previous quarter. While such a large spread could potentially signal that production is outpacing demand, Tesla said the reason was because of a logistical crunch at the end of the quarter.

“As our production volumes continue to grow, it is becoming increasingly challenging to secure vehicle transportation capacity and at a reasonable cost during these peak logistics weeks,” the company said in a statement. “In Q3, we began transitioning to a more even regional mix of vehicle builds each week, which led to an increase in cars in transit at the end of the quarter.”

In a tweet Sunday, Chief Executive Elon Musk said he hoped for “steadier deliveries” this quarter.

Wedbush analyst Dan Ives on Sunday took that explanation in stride.

“In a nutshell, this quarter was nothing to write home about and the Street will be disappointed by the softer deliveries. We view this more of a logistical speed bump rather than demand driven,” he said in a tweet.

Still, Tesla will need to significantly increase production in the current quarter in order to meet its annual growth target.

On Friday at its second annual A.I. Day, Tesla unveiled a prototype of a humanoid robot, called Optimus, that displayed finger dexterity. Musk said the robots, intended for industrial uses, would cost around $20,000 each and could hit the market in three to five years, though experts were skeptical.

The EV maker is expected to announce third-quarter quarter earnings Oct. 19.

Tesla shares

have sunk about 25% year to date, roughly in line with the S&P 500’s

2022 decline.


Image and article originally from www.marketwatch.com. Read the original article here.

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