Tesla fell short of third-quarter delivery estimates on Wednesday, facing stiff competition from rivals in China and Europe. This led to a 3% drop in shares for the world’s most valuable automaker.
The electric vehicle company delivered 462,890 vehicles in the three months ending September 30, a 6.4% increase from the previous quarter.
Wall Street analysts had anticipated Tesla to deliver 469,828 vehicles on average, according to a survey of 12 analysts by LSEG.
To match last year’s 1.81 million deliveries, the company needs to deliver a record 516,344 cars in the fourth quarter. Any shortfall could result in Tesla’s first drop in deliveries in a year.
Challenges such as competition in the U.S., diminished subsidies in Europe, and lower consumer spending in China all impacted Tesla’s quarterly deliveries.
In China, Tesla faces strong competition from automakers like BYD and Xiaopeng, who are rapidly expanding with local government subsidies.
BYD’s third-quarter sales of 443,426 electric vehicles were overshadowed by Tesla’s sales, although the focus on plug-in hybrid vehicles helped increase shipments by over 75% in the latest quarter.
According to a report from Jato Dynamics, BMW surpassed Tesla in Europe’s battery electric vehicle market in July for the first time, as Tesla continues to lose market share to local companies.
Tesla’s profit margins are also impacted by price reductions and incentives.
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In an effort to shift focus to AI-powered self-driving technology, Tesla is set to reveal its robotaxi product at a prominent event in Los Angeles on October 10.
Source: www.theguardian.com
