Tesla Sees First Delivery Increase of 2023 in Q3, Analysts Cautiously Optimistic
Tesla, the electric vehicle giant, reported a rise in global deliveries for the third quarter of 2023, marking the first increase this year. The company delivered 462,890 vehicles from July through September, slightly surpassing analyst estimates of 462,000 and outperforming the 435,059 vehicles delivered in the same period last year.
The boost in deliveries can be attributed to a combination of factors, including low-interest financing, attractive lease deals, price cuts, and free charging offers. Despite this positive news, Tesla shares fell nearly 4% in morning trading.
Dan Ives, an analyst at Wedbush, described the delivery figures as a positive step but noted the pressure on Tesla’s stock due to higher investor expectations. Ives emphasized the importance of reaching 1.8 million deliveries for the year.
Tesla has faced challenges in selling its aging model lineup, with growth in EV sales slowing in the U.S. and Europe due to range, price, and charging concerns. The company’s discounts have impacted profit margins, with the average vehicle price dropping to $42,500, the lowest in four years. Additionally, Tesla faces increased competition from both legacy and startup automakers.
The majority of Tesla’s sales came from Models 3 and Y, with only 22,915 sales from more expensive models, including X, S, and Cybertruck. Regional market insights suggest that China sales are expected to rebound with favorable leasing and financing terms, while Europe remains slow due to macroeconomic pressures. U.S. demand is anticipated to stabilize.
Looking ahead, BNP Paribas Exane expressed caution about long-term market expectations for Tesla, with sales estimates for 2026 and 2027 falling below market expectations. In a move that could potentially impact future sales, Tesla is set to unveil a purpose-built robotaxi at an event next week.
As the electric vehicle market continues to evolve, Tesla’s ability to maintain growth and meet investor expectations remains a focal point for industry observers.
