Tesla Reports Q3 Deliveries, Shares Experience a Dip
Q3 Deliveries and Production
Tesla shares have experienced a dip as the market opened on Wednesday. This follows the company's report of a total of 462,890 deliveries during the third quarter. Tesla's Q3 2024 report indicates 462,890 deliveries and 469,796 vehicles produced. FactSet StreetAccount estimates had anticipated 463,310 deliveries for the quarter ending September 30.
Understanding Tesla's Deliveries
While Tesla does not provide a definition for "deliveries" in its financial reports, it is generally viewed as the closest metric to units sold. This makes it a crucial figure for Wall Street. In comparison to the recent report, Tesla reported 435,059 deliveries and 430,488 vehicles produced a year ago. In the last quarter, it reported 443,956 deliveries and production of 410,831 units.
Analyst Predictions and Whisper Numbers
There was a whisper number of 472,000 based on VIN data, which could explain the dip in shares. Before the report, Alexander Potter of Piper Sandler had increased his delivery estimate to 459,000 EVs for Q3 and 1.75 million for the year. This estimate was slightly below consensus but optimistic about Tesla’s performance in China.
Projections for Q3
Dan Levy of Barclays projects over 470,000 units in Q3, citing global EV sales and August data from China. He noted that their delivery estimate implies a volume increase of approximately 6% sequentially and about 8% year-over-year. Levy believes a beat could drive further stock strength into Robotaxi Day.
Expectations for Sales and Profitability
Dan Ives of Wedbush expects sales and profitability to improve. He stated that price cuts are mostly in the past, removing a margin overhang. He believes gross margins should finally start to rebound in the third quarter.
Cybertruck Sales
S&P Global Mobility reports that Tesla sold over 5,000 Cybertrucks in July, bringing year-to-date sales to 17,722. Deutsche Bank projects Q3 sales to reach 13,500 units. Although this represents just 3% of total sales, the Cybertruck’s growth could impact whether Tesla meets overall delivery targets.
Upcoming Events and Catalysts
The company's October 10 robotaxi event could be a significant catalyst, having already driven shares up 20% in a month. More important news might also come from the company's Optimus robotics program.
Bottom Line
Tesla's Q3 deliveries report has caused a dip in its shares, despite the numbers being close to analyst estimates. The company's upcoming events and programs, such as the robotaxi event and the Optimus robotics program, could be significant catalysts for the company. What are your thoughts on this development? Share this article with your friends and let us know your views. Don't forget to sign up for the Daily Briefing, which is available every day at 6pm.
