Tesla stock was trading at $243.60 as of 12:14 PM EDT.
After the electric vehicle juggernaut’s Q3 delivery total fell short of analysts’ expectations, Tesla (NASDAQ:TSLA) dropped 5.1% in premarket trade on Monday. Following the updates on the deliveries, J.P. Morgan maintained a pessimistic outlook on Tesla (TSLA). “We continue to be cautious about valuation and continue to expect significant downside (-42%) to our price objective, including on the possibility for multiple compression amidst increased competition and decreasing differentiation over time vs. established automakers,” updated Ryan Brinkman.
J.P. Morgan’s pessimism was offset, though, by a sizable number of bulls. Goldman Sachs analyst Mark Delaney commented that the vehicles in transit are a mitigating factor for the 3Q delivery shortfall and that the company is still in a strong position to achieve healthy volumes and margins/FCF going forward.
According to Wedbush Securities, investors will quickly forget about Q3 thanks to Tesla’s (TSLA) Q4 performance. Dan Ives, an analyst, “The unit setup for 4Q, in our opinion, is quite strong and has the potential to approach enormous levels, possibly exceeding 475,000.
Tesla Q3 deliveries, Tesla stock
Tesla (NASDAQ:TSLA) produced 365,923 cars (359,853 Bloomberg forecast) and delivered 343 830 cars, falling short of the analyst projection of 357,938 cars (based on Bloomberg consensus). 343,830 deliveries in Q3 indicate a 35% increase over Q2 and a 42.5% year-over-year increase.
There were more vehicles in transit at the conclusion of the third quarter as a result of the company’s change to a more balanced regional mix of vehicle manufacturing each week. As a result of regional batch construction of automobiles, delivery volumes historically tended to be skewed toward the end of each quarter. 18.672 Model S/X deliveries and 19.935 Model S/X production deliveries of Model 3/Y were 325,158 and 345,988 respectively.
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