Tesla misses delivery targets predicted by Wall Street, shares down

Tesla saw shares fall by 6% on Wednesday after it announced that its deliveries rose by just 2%, to a total of 97,000 units this quarter. Analysts were expecting the firm to report 97,447 deliveries. Either way, the firm has tried to reassure traders by explaining that orders exceeded deliveries this quarter and that it’s going into the final quarter with a backlog, which could help its figures.

According to Reuters, the firm is aiming to deliver between 360,000 and 400,000 vehicles during 2019. To meet this goal, the firm needs to deliver 104,800 in the final quarter, that’s 7,800 more than it delivered in the third quarter. The firm will be hoping that its backlog of orders, if met, will help compensate the lower count. Tesla will get a further boost after it opens its Shanghai plant this month. The company is looking to produce at least 1,000 Model 3s per week from the factory for customers in China.

Roth Capital Partners analyst, Craig Irwin, speaking to Reuters said that it looks like the 360,000 unit deliveries target is “starting to look a bit iffy”. Only time will tell if the factors mentioned above will help boost its deliveries to meet its targets.

In terms of deliveries by vehicle, Tesla’s Model S and Model X deliveries fell 1.4% to 17,400, below analyst estimates of 18,829. As for the Model 3, the company delivered 79,600 units in the third quarter, above estimates of 79,470 and up 2.6% over the second quarter.

Source: Reuters

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