Tesla delivered fewer vehicles than analysts expected in the third quarter, as stiff competition in China and Europe affected demand for its older models, putting electric-The vehicle manufacturer is at risk of suffering its first drop in annual deliveries.
Shares of the most valuable in the world. car manufacturer They fell more than 6% in morning trading Wednesday and were on track to erase almost all of their gains for the year.
The growing interest of consumers in hybrids over electric vehicles, the lack of European subsidies and strong competition in Porcelain were a drag on Tesla deliveries as Chinese automakers like BYD and Xpeng aggressively expand their presence in the world’s largest auto market. marketwith the help of locals government subsidies.
Tesla said deliveries rose 6.4% in the July-September period to 462,890 vehicles, marking its first quarter of growth this year. But the figure fell short of estimates of 469,828, according to 12 analysts surveyed by LSEG.
“Stay below expectations could indicate difficulties in meeting overall 2024 delivery targets and prospects for sustainable growth beyond the current lineup,” said Gadjo Sevilla, senior technology analyst at eMarketer.
Tesla now needs a record 516,344 vehicle deliveries in the fourth quarter to maintain its 2023 delivery levels of 1.81 million vehicles. A deficit could result in tesla recording its first annual drop in deliveries.
The report comes ahead of a closely watched event on October 10 in Los Angeles, where Tesla is expected to unveil its robotaxi product in a bid to shift its strategy toward AI-powered autonomous technologies.
Tesla delivered 439,975 Model 3 and Model Y, and 22,915 units of other models, including the Model S sedan, Cybertruck and premium Model X SUV. It produced 469,796 vehicles during the July-September period.
In July, BMW led the European battery electric vehicle market for the first time, surpassing Tesla, which has been losing market share to domestic companies, according to a JATO Dynamics report.
Still, some analysts said a return to growth marked a positive sign for Tesla and showed that some of the incentives it had put in place to boost demand were working.
“Taking a step back, deliveries return to growth “It was the biggest takeaway from today’s numbers, especially given the big push for promotions and financing conditions to stimulate demand in a tough auto market,” said Matt Britzman, senior equity analyst at Hargreaves. Lansdown, owner of Tesla shares.
This spring, Tesla introduced a number of new incentives, including insurance offers and zero incentives.interest financing, especially in China, which represents a third of its sales.
Tesla’s deliveries were also higher than rival BYD, which delivered 443,426 battery electric vehicles in the third quarter. This was partly due to the Chinese EV giant’s focus on plug-in hybrid vehicles, deliveries of which increased more than 75% in the latest quarter.
(Reporting by Akash Sriram in Bengaluru; Editing by Anil D’Silva)
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