Tesla (TSLA) -) on Monday reported third-quarter deliveries of around 435,000 vehicles, missing Wall Street expectations of 455,000 deliveries.
The electric-vehicle leader produced 430,488 cars during the quarter, the bulk of which consisted of Model 3 and Model Y vehicles.
The production decline, down about 7% from the previous quarter's 480,000 vehicles, was caused by expected downtimes resulting from necessary factory upgrades, the automaker said in a statement. Tesla is still targeting a volume of 1.8 million vehicles for 2023.
Related: What's stopping Tesla from achieving Level 3 self-driving
Tesla will report third-quarter earnings Oct. 18.
The miss, however, is not a concern for Gene Munster, managing partner at Deepwater Management. Between those expected factory shutdowns — which Munster noted too few analysts accounted for — and Tesla's announcement of new models midway through the quarter, comparisons against other big carmakers aren't as relevant as they might normally be.
"Big picture, all indications are the new Model 3 and Model Y will be hits along with the Cybertruck, which should start deliveries this year and ramp production throughout 2024," Munster posted on X.
"These should lay the groundwork for upside to production and deliveries in the year ahead."
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Shares of Tesla at last check were off 1.8% at $245.81.
Analyst Munster: 1 negative in Tesla report
"The one negative in the report is the language around deliveries for the year," Munster added. "Most analysts were thinking 'above' 1.8 million. While it's splitting hairs, it's the kind of thing that impacts the stock in the near term."
Electric vehicle rival Rivian (RIVN) -) simultaneously released its own production numbers for the quarter, beating analyst estimates of 14,973 in delivering 15,564 vehicles, a 23% increase from the previous quarter.
The company produced 16,304 vehicles during the quarter. Rivian said it still expects to produce 52,000 vehicles for the year.
Last year, Rivian produced just over 7,000 vehicles, delivering around 6,500.
Rivian stock, up more than 30% for the year, at last check fell 3.4% to $23.46..
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