Tesla Misses Q3 Delivery Estimates Due to Factory Upgrades

Tesla falls short of market estimates for third-quarter deliveries as planned factory upgrades led to production disruptions, causing a 2.4% drop in its early trading shares.

The Q3 Delivery Figures: 

The electric vehicle manufacturer delivered 435,059 vehicles in the third quarter, representing a nearly 7% decline from the previous quarter. However, Tesla maintains its target to deliver 1.8 million vehicles for the full year.

An LSEG poll of eight analysts had estimated deliveries ranging from 442,000 to 511,405 vehicles, with a consensus estimate of 459,949.

U.S. Electric Vehicle Market Trends: 

The U.S. electric vehicle market has experienced a slowdown, although there are indications of growth. Canalys Research notes a rising demand for a broader range of electric vehicle options to meet increasing consumer interest.

Tesla remains a dominant force in the U.S. electric vehicle market for 2023. However, there is a growing need for diverse EV offerings to cater to consumer preferences.

Factory Upgrades and Future: 

Outlook Tesla produced 430,488 vehicles in the third quarter, a decrease from 479,700 in the second quarter and an increase from 365,923 a year ago. 

Analysts speculate that factory upgrades could boost deliveries in the fourth quarter by enabling Tesla to introduce refreshed models that can compete more effectively with rivals like Ford and BYD.

Upcoming Model Launches: 

The updated Model 3, with a higher price point, is set to commence deliveries in China and Europe in the fourth quarter. Additionally, an event for the launch of the Cybertruck is anticipated later this year.

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