The downtime for the Tesla factory upgrades caused the decline in production and deliveries of electric vehicles in the third quarter compared to the second and first quarters.
Tesla Inc (NASDAQ: TSLA) shares closed Monday trading at $251.60, up 0.55 percent from the day’s opening price. The slight gain added to the impressive YTD performance amid high-impact news. Before the close of Monday’s trading session, Tesla announced the third quarter (Q3 2023) results for its electric vehicle production and deliveries. According to the announcement, Tesla produced a total of 430,488 electric vehicles during the third quarter and delivered 435,059 units to customers. The company’s model 3/Y continued to record the highest demand compared to model S/X.
Tesla Deliveries in Q3 2023
Notably, model 3/Y recorded a production of 416,800 and delivered 419,074 to customers during the third quarter. The company announced Model S/X recorded 13,688 in production and delivered 15,985 to customers during the third quarter.
The company’s production and deliveries did not, however, meet Wall Street’s expectations. According to a survey conducted on Wall Street analysts by StreetAccount, Tesla was expected to deliver 461,640 electric vehicles during the quarter that ended on September 30. Nonetheless, the company is optimistic of hitting its annual production and deliveries target of about 1.8 million units.
“A sequential decline in volumes was caused by planned downtimes for factory upgrades, as discussed on the most recent earnings call,” the company noted. “Our 2023 volume target of around 1.8 million vehicles remains unchanged.”
Tesla and Market Outlook
As a leading electric vehicle company with about $794 billion in market capitalization, Tesla has managed to outperform its competitors amid a global transition from combustion engines to full or hybrid models. Notably, the company promised to release its financial results for the third quarter on October 18.
The company opted to omit the production details for its class 8 semi-electric truck despite the noted deliveries to some of its customers including PepsiCo Inc (NASDAQ: PEP). Meanwhile, Tesla has opened orders for its Cubertruck with a refundable $100 and option to customize the unit as production nears.m
Tesla is, however, facing intense competition from upcoming electric vehicle companies, especially from China. For instance, NIO Inc (NYSE: NIO) has more than seven models with competitive performance features and pricing. As a result, Tesla has been compelled to constantly lower its prices to remain competitive and relevant in the global markets.
Additionally, Tesla has continued to expand its charging stations, sharpen its battery production, and improve on its auto software used in the car models. The company has also enjoyed the Federal tax credits including a $7.5k for the new model 3, model Y, and certain mode X after December 31.