SHARE OF THE WEEK: Tesla’s Decline in Deliveries Puts Pressure On
Tesla is set to kick off another major earnings season in the US next week, but it faces pressure following its first decline in deliveries in over a year.
The electric car manufacturer, led by Elon Musk and headquartered in Texas, announced that it shipped 435,059 cars in the third quarter, falling short of analysts’ estimations of over 456,000 and down from 466,140 in the previous three months.
During this time, Tesla produced 430,488 vehicles, also below Wall Street’s predictions.
Musk had previously warned of reduced numbers due to necessary factory shutdowns for product upgrades.
The drop in deliveries increases the pressure on Musk as he prepares to release the company’s financial results on Wednesday.
In an effort to boost sales in an uncertain economy and fend off competition from companies like Ford and China’s BYD, Tesla has been cutting prices since the beginning of the year, further impacting profit margins.
Investors are eager to gain more insight into the pricing strategy and its potential effects on profitability. Despite the challenges, Tesla remains on track to achieve its goal of delivering 1.8 million cars in 2023.
Sophie Lund-Yates at Hargreaves Lansdown commented, “Tesla’s price cuts are causing confusion and uncertainty. Investors want to know if the weakening economic outlook and changes in consumer spending patterns could lead to a reversal in volumes and profits.”
Denial of responsibility! Vigour Times is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
