Oct 3, 2019

Tesla deliveries fall short of expectations despite record quarter

Photo: Smith Collection/Gado/Getty Images

Tesla delivered a record 97,000 vehicles last quarter but nonetheless fell short of some analysts' expectations for the July–September stretch.

Why it matters: The electric automaker's stock tumbled roughly 6% in after-hours trading following Wednesday's announcement, and is currently down around 5%.

  • CEO Elon Musk had raised expectations in an email to staff last week when he said Tesla had a shot at hitting 100,000.
  • Stepping back, Tesla is a crucial player in the movement of EVs into the mainstream.

What they're saying: "This is a credibility hit. This is a textbook example of Elon not being disciplined and having difficulty managing expectations," Gene Munster of the VC firm Loup Ventures tells Bloomberg.

But, but, but: Tesla said orders are at record levels and emphasized interest in its Model 3 sedan, which is aimed at a wider pool of buyers than the costlier Model S and Model X.

  • "As was also the case in Q2, nearly all of our Model 3 orders were received from customers who did not previously hold a reservation, solidifying the transition to generating strong organic demand," Tesla said in a release.
  • "We are continuing to focus on increasing production to meet that demand."

One big question: Can Tesla hit its full-year goal of at least 360,000 deliveries worldwide, which would require 105,000 in Q3?

What's next: As we noted Friday, a more important moment arrives when Tesla announces Q3 earnings in coming weeks.

Go deeper: Tesla's next moment under the microscope

Go deeper

Tesla returns to the spotlight as Q3 earnings loom

Photo: Beata Zawrzel/NurPhoto via Getty Images

Tesla, struggling to turn the corner to profitability, will report its Q3 earnings after markets close Wednesday.

The big picture: Delivering more cars — and the electric carmaker already announced a record quarter on that front — isn't yet a recipe for financial health, especially as the lower margin Model 3, the best-selling EV in the U.S., is increasingly its dominant product.

Go deeperArrowOct 23, 2019

Tesla's global aspirations are dividing the markets

Data: Investing.com; Chart: Axios Visuals

Tesla’s third-quarter revenue fell by $2 billion, or almost 40%, in the U.S., a regulatory filing released Tuesday showed, the company's first drop in more than two years.

Worth noting: However, sales outside the U.S. jumped, with China sales growing 64% to $669 million.

Go deeperArrowOct 30, 2019

Tesla's good third-quarter earnings don't excuse its challenging future

Photo: Smith Collection/Gado/Contributor/Getty Images

Tesla had a good night, and now the question is whether it's a new day for the pioneering but volatile automaker that kicked off the push to move electric vehicles toward the mainstream.

Driving the news: Tesla surprised Wall Street with a $143 million third-quarter profit on Wednesday evening, and announced plans to ramp up vehicle production at its China factory sooner than expected.

Go deeperArrowOct 24, 2019