Tesla Stock Dips as Investors Anticipate Stronger Deliveries Growth

Tesla shares experienced a decline of over 3% on Wednesday following the company’s report of Q3 2024 deliveries totaling 462,890 vehicles.

During the quarter, Tesla manufactured 469,796 vehicles, with 443,668 of these being Model 3/Y. The remaining production included 26,128 units from other models such as the Model S, X, and Cybertruck. Additionally, the company deployed 6.9 GWh of energy storage products.

Although Tesla’s delivery figures met consensus estimates, analysts at Barclays suggested that investors were expecting a more substantial increase. The production numbers did come in slightly above forecasts.

Oppenheimer noted that while Tesla’s deliveries met expectations, a decline in European demand was balanced by robust performance in China. Attention is now turning to Tesla’s AI Day on October 10, where the company is anticipated to reveal advancements in areas such as robotaxis and humanoid robotics.

Wedbush analysts characterized the delivery figures as a “step in the right direction” but mentioned that expectations for a stronger performance were not fulfilled. They expressed confidence in Tesla’s ability to reach its full-year target of 1.8 million deliveries, despite facing earlier challenges this year. The firm looks forward to additional guidance during Tesla’s Q3 earnings call on October 23.

Wedbush commented, “We believe China showed relative strength this quarter but was offset by weakness in the US and Europe. Looking ahead to the fourth quarter, we remain confident in Tesla’s ability to hit the goal of 1.8 million deliveries for FY24, which we will view as a significant achievement given the challenges faced in the first half of the year.”

Overall, analysts anticipate some short-term pressure on Tesla’s stock due to the delivery results, but they maintain a positive outlook on the company’s long-term potential, particularly in the realms of AI and autonomous driving.