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Tesla Inc. (NASDAQ:TSLA) Stock Drops 3% After Missing Car Delivery Projections For Q3

Tesla Inc. (NASDAQ:TSLA) stock slid 3% after-hours trading on Wednesday after the company announced that it delivered 97,000 cars globally in the third quarter.

This was an impressive delivery but still missed the Wall Street projection of 99,000 deliveries. The number also fell short of CEO Elon Musk’s recently stated target of 100,000 vehicle deliveries in the quarter. The CEO has, however, indicated that the final numbers could vary by 0.5% or more.

Read More:Global Shares Slump To One-Month Lows Following Reports Of Softening Manufacturing In The US

Tesla reports record deliveries in Q3

In a press release on Wednesday, the company said they edged a second-quarter record of 95,356 deliveries. The company has now delivered a total of 255,000 vehicles a year to date, which means already they have surpassed last year’s deliveries. This means that the company will have to set another record in Q4 for it to hit the low end of its projection at the beginning of this year.

The company had indicated that in 2019, it would deliver around 360,000 to 400,000 vehicles this year. The shanghai China factory is complete and will start production at the end of the year. This will boost production and help the company meet its targets. The electric carmaker indicated that in the third quarter, around 96,155 cars came off its production line, which is a record in the company’s history.

Tesla delivered 79,600 Model 3 vehicles and around 17,400 Model S and X cars in the quarter compared to 55,840 Model 3s and 27,660 Model S and X cars delivered in Q3 last year. The delivery of the aging and expensive Model X and S cars accounted for around 18% of the third-quarter deliveries, which is almost the same as Q2 but a significant drop from the 33% they represented last year.

Tesla could meet 2019 delivery targets if they delivery 105,000 units

Tesla is optimistic it will hit its target of between 360,000 and 400,000 cars this year, and they could hit it if they deliver 105,000 cars in Q4. Analysts are expecting are estimating that the company will deliver around 106,000 cars in Q4. This could be attainable as the company has said that it has a backlog of orders going into Q4, and they will increase production to meet customer demand.

In a bid to boost deliveries, the company adjusted the prices of Model 3 last month, and it also announced that customers would get free supercharging for two years, among other incentives.

Ruchi Gupta

Ruchi Gupta covers various beats from finance to technology and from lifestyle to hobbies. She has an MBA in Finance. Ruchi enjoys writing on celebrities and political news. She likes traveling and exploring places.

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