Tesla Inc. experienced a decline in its quarterly deliveries, shipping 435,059 cars globally in the third quarter. This marked the company's first quarterly delivery decrease in over a year. The results fell short of expectations, as several Wall Street analysts had already lowered their delivery estimates. Bloomberg's consensus estimate, as of Friday, stood at 456,722. In comparison, Tesla delivered 466,140 vehicles in the second quarter.
Tesla had signaled in advance that it would be delivering fewer cars in this period. The company has been preparing its factories for the production of a refreshed Model 3 sedan and the upcoming Cybertruck. Despite the lower delivery figures, Tesla has still managed to deliver over 1.3 million cars worldwide this year. To meet its full-year guidance, the company will need to accelerate its deliveries in the fourth quarter, aiming for more than 475,000 units.
Although the third-quarter results were below expectations, Tesla remains optimistic about the future. The company reaffirmed its target of delivering around 1.8 million vehicles in 2023. Tesla's shares saw a modest increase of 0.5% following the delivery announcement.
According to Seth Goldstein, an analyst at Morningstar Research Services LLC, the stock's response can be attributed to management reiterating their 2023 volume target, implying strong growth in the coming quarter.
Throughout this year, Tesla has implemented various strategies to boost sales. The company has introduced price cuts to stimulate demand in the midst of rising interest rates and inflation concerns. Tesla has consistently reduced the prices across its model range, including substantial markdowns of up to 34% for the Model X.
Although Tesla does not provide a breakdown of sales by region, the United States and China are its largest markets. The majority of deliveries comprised the Model 3 sedan and the Model Y crossover. Tesla disclosed that it manufactured 430,488 vehicles during the third quarter.
The softer sales performance in this quarter is expected to have an impact on Tesla's earnings. The company is scheduled to release its financial results for the third quarter of 2023 on October 18, 2023.
Tesla produces the Model S, X, 3, and Y at its facility in Fremont, California, while the Shanghai plant is responsible for the production of the Model 3 and Y. The newer plants in Berlin and Austin are primarily focused on manufacturing the Model Y.