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tesla (NASDAQ:TSLA) reversed a premarket loss and entered positive territory late Monday morning as investors evaluated the Austin-based company’s third-quarter deliveries report.
Analysts noted that the lack of deliveries was related to longer than expected downtimes from factories in Shanghai and Austin. Wedbush Securities analyst Dan Ives said downtime is likely to have caused about 20,000 units to be moved to the fourth quarter. “With price cuts mostly in the rearview mirror providing price stability going forward, we believe Tesla is now ready to enter the next stage of growth for the company globally with the upgrade of the Model 3 to “front and center in China and Cybertruck production ready to go. will begin around Halloween,” he noted. Fundamentally, Tesla (TSLA) remains committed to the goal of 1.8 million deliveries for this year.
Earlier Monday, Tesla (TSLA) revealed that it produced 430,488 vehicles and delivered 435,059 vehicles during the third quarter. The electric vehicle maker said a sequential decline in volumes was due to planned downtime for factory upgrades, as discussed in the most recent earnings conference call. Of note, 4% of the units were subject to operating lease accounting. Crucially, Tesla’s (TSLA) 2023 volume target of around 1.8 million vehicles remains unchanged. During the second quarter, Tesla (TSLA) delivered 466,140 electric vehicles, easily beating estimates of around 445,000 units. The company produced 479,700 vehicles in the same period. In the first quarter of 2023, Tesla delivered 422,875 vehicles and produced 440,808 units.
Tesla (TSLA) Stock Rises 0.40% at 11:03 a.m. Within the electric vehicle sector, the biggest advancers on Monday were Fisker (FSR) +3.2%Charging flashing (BLNK) +1.5%and Xpeng (XPEV) +0.8%. Notable decliners included Canoo (GOEV) -7.2%Workhorse Group (WKHS) -6.0%and Faraday Future Intelligent Electric (FFIE) -5.3%.
