The auto manufacturer Tesla Inc. (TSLA stock) blamed a poor delivery report on shipment difficulties, which increased the number of vehicles on their way to consumers as the quarter closed. As a result, TSLA stock price plummeted in early trade after the carmaker made this announcement.
Tesla (TSLA stock) Production
Tesla announced on Sunday that it delivered 343,830 vehicles in the third quarter, setting a new record and marking a turnaround from earlier in the year when a shutdown at its China factory as well as challenges around opening factories in Berlin and Austin affected the number of vehicles that it was able to get into customers’ driveways.
The third-quarter delivery result still did not exceed Wall Street estimates, which varied between 358,000 and 371,000 automobiles depending on the polling organization. This is even though it was a record level and the market had bounced back. There was also a disparity between production numbers and delivery numbers that was far bigger than usual. During the period covered by the third quarter, the firm manufactured 365,923 motor cars.
In a statement, Tesla said, “As our production volumes continue to grow, it is becoming increasingly challenging to secure vehicle transportation capacity and at a reasonable cost during these peak logistics weeks.” “It is becoming increasingly difficult to secure vehicle transportation capacity and at a reasonable cost during these peak logistics weeks.” “We started making a move to a more equitable regional mix of vehicle builds each week in the third quarter, which resulted in an increase in the number of cars that were in transit at the end of the quarter. Consumers have placed orders for these automobiles, and they will be delivered to the customers once the ship reaches its final destination.”
To put it another way, Tesla (NASDAQ:TSLA) is going to make an effort to advance beyond its illustrious end-of-the-quarter pushes. On Sunday, Elon Musk, the company’s CEO, stated that the company is attempting to take a more measured approach. “When there is a hurry at the end of the quarter, the experience of the customer suffers. Maintaining a steady pace is the best strategy, “he tweeted.
There is no breakdown of sales by region provided by Tesla (NASDAQ:TSLA); nonetheless, the United States and China are its two main markets. The Model 3 and the Model Y were responsible for roughly 95% of all deliveries during the previous quarter. In addition, the Model S and the Model X are produced at the plant located in Fremont, California.
The shipment numbers were released shortly after Tesla’s AI Day event, which took place beyond normal business hours on September 30. Just over a year after a human dressed as a robot danced on stage during a similar showcase of the company’s artificial intelligence efforts in August 2021, Musk displayed a prototype humanoid that walked and raised its hands. This demonstration was part of the company’s artificial intelligence efforts.
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