Tesla Stock Slips After Missing Delivery Estimates

• Tesla faces increasing competition from rivals

• Total vehicle sales might be down in 2024 year-over-year

Tesla posted its third-quarter vehicle production and deliveries report on Wednesday.

Here are the key numbers for Q3:

Total deliveries: 463k

Total production: 470k

Source: Tesla reports

The consensus according to estimates compiled by FactSet was missed by 0.1%. However, investors expected more, as the stock slipped nearly 4% after the report.

Deliveries are the closest approximation to units sold by Tesla. Hence, it’s one of the most closely watched metrics on Wall Street.

Tesla is not reporting guidance for this year's deliveries, but executives have said they expect a lower delivery growth rate this year versus last despite the company having added a new vehicle to their line-up, like the Cybertruck, and slashed prices on some models.

Year-to-date sales are -2.3%, and 2024 looks to be the first year with total vehicle sales might possibly down.

The company faces increasing competition — here in the US but also in China. Rival companies like BYD, Geely, and others are posting record EV sales numbers.

Tesla doesn’t break down its numbers regionally or by segment other than “Model 3/Y,” which accounted for 444k produced and 440k delivered in Q3 — while everything else, including Model S, X, Cybertruck, and Tesla Semi, are gathered into the “other models” category.

Up next, investors will be watching the Robotaxi event on October 10 and the third-quarter earnings report later this month; investor eyes will be glued on profit margins.

Musk has promised Tesla self-driving cars for years, but the company has yet to deliver.

Shares of Tesla climbed 32% in the third quarter, erasing their loss for the year in the process. The stock is now up almost 4% in 2024, trailing the Nasdaq, which has gained 19%.

Investors can long Tesla using our 2x Tesla, 3x Tesla.

Alternatively, traders can short Tesla using our -1x Tesla, -2x Tesla, -3x Tesla.