Tesla posted sequential and annual gains in third-quarter deliveries on Wednesday, although the electric vehicle maker's shares declined intraday as Wall Street's whisper numbers indicated a stronger print. The company delivered 462,890 vehicles in the September quarter, marking an increase from 435,059 deliveries in the same period a year ago and from 443,956 units delivered in the second quarter.
Whisper numbers, reflecting the expectations of market insiders, ranged from 465,000 to 470,000 vehicles, according to Wedbush Securities, which placed the Street's consensus at 463,300 units. On the other hand, DA Davidson predicted the market was looking at over 483,000 deliveries, while the consensus among analysts on Visible Alpha was for 460,900 deliveries. In the trading session following the report, shares of Tesla fell by 4.4%.
While some analysts characterized the delivery print as 'good and a step in the right direction', there was a palpable sense of disappointment in the overall numbers. Analysts from Wedbush, including Daniel Ives, suggested that the Street was hoping for an upside in deliveries within the range of 3,000 to 5,000 vehicles beyond the reported figures.
Ives noted, 'We will see some pressure on shares this morning as investors walk away from delivery numbers expecting more.' Despite the dip in share prices, Wedbush reiterated an outperform rating and set a $300 price target on the stock, regarding the quarter's deliveries as a 'clear improvement' from the first half of 2024. Tesla's production for the third quarter climbed to 469,796 vehicles, up from 430,488 units the previous year and 410,831 in the June quarter.
The Visible Alpha forecast had anticipated around 449,200 units. Ives remarked that while there was relative strength in China this quarter, it was counterbalanced by weakness in the US and Europe. He maintained that the company remains on track to meet the 'key and important bogey' of 1.8 million deliveries for the year. As for the competitive landscape, Li Auto previously reported a significant 45% year-over-year increase in third-quarter deliveries, reaching 152,831 vehicles.
Meanwhile, Nio recorded a 12% annual growth in its third-quarter tally, achieving 61,855 vehicles, which it hailed as a new quarterly record. XPeng announced a 16% increase from the same quarter of the previous year, delivering 46,533 units..