Tesla stock falls as investors expected 'more robust' deliveries growth

Investing.com -- Tesla (NASDAQ:TSLA ) shares fell more than 3% on Wednesday after the electric vehicle giant reported Q3 2024 deliveries of 462,890 vehicles.

Tesla produced 469,796 vehicles during the quarter, with 443,668 of those being Model 3/Y vehicles, and 26,128 from other models, including the Model S, X, and Cybertruck. The company also deployed 6.9 GWh of energy storage products.

While Tesla's delivery figure aligned with consensus estimates, analysts at Barclays said in a note that they believe investors had anticipated a more significant beat.

The firm's production numbers also came in slightly above estimates.

Oppenheimer highlighted that while Tesla's deliveries met expectations, weakness in European demand was offset by strong performance in China.

They note that attention is now shifting to Tesla's AI Day on October 10, where the company is expected to showcase advancements in robotaxis and humanoid robots.

Wedbush analysts described the delivery numbers as a "step in the right direction" but noted that expectations for a stronger beat weren't met.

They remain confident in Tesla's ability to hit its full-year target of 1.8 million deliveries, despite some challenges earlier in the year. The firm is looking forward to further guidance during Tesla's Q3 earnings call on October 23.

"We believe China showed relative strength this quarter but was offset by weakness in the US and Europe," said Wedbush. "Looking to the rest of the year/4Q with demand momentum in delivery performance, we do remain confident in Tesla's ability to hit 1.8 million deliveries for FY24 which we will view as a feat given the extensive white-knuckle moments seen throughout the first half of the year."

Overall, analysts expect some near-term pressure on Tesla's stock due to the delivery results but remain optimistic about the company's long-term prospects, especially in AI and autonomous driving.

Source: Investing.com