Tesla (TSLA) -) shares turned higher in late Monday trading after the carmaker posted softer-than-expected third quarter deliveries, citing planned downtimes for key factories in the U.S. and China.
Tesla delivered 435,059 new cars over the three months ended in June, the company said in a statement, up 26.5% from the same period last year and 6.6% south of the 466,140 tally reached over the second quarter.
Analysts' forecasts for deliveries ranged from 420,000 to around 470,000 with Refinitiv pegging the March quarter target at 459,000.
Tesla delivered 416,800 units of its Model 3 sedan and Model Y midsize SUV, a 6.6% decrease from the second quarter as well as 15,984 units of its higher-priced Model S sedan and Model X full-size SUV, the Tesla report indicated.
"A sequential decline in volumes was caused by planned downtimes for factory upgrades, as discussed on the most recent earnings call. Our 2023 volume target of around 1.8 million vehicles remains unchanged," Tesla said in a statement.
Tesla shares were marked 0.36% higher in late afternoon trading following the delivery release to change hands at $251.11 each.
"In a nutshell, there was nothing to write home about in these numbers and the Street will be left wanting more,' said Wedbush analyst Dan Ives, who carries an 'outperform' rating with a $350 price target on Tesla stock.
"That said, Musk & Co. committed to the 1.8 million delivery target for 2023 with momentum ahead as the Model 3 refresh and production of the Cybertruck are clear tailwinds into the next year along with margins troughing and rebounding from these levels," he added.
Tesla delivered a record 466,140 new cars over the second quarter, an 83.5% increase from a year earlier, and 422,875 over the three months ending in March.
Tesla sold around 150,000 cars in China over the months of July and August, according to official tallies from the China Passenger Car Association, compared to around 171,000 over the May June period. Tesla sold just under 250,000 cars in China over the second quarter, according to CPCA data, well ahead of last year's covid-affected tally.
The CPCA said August sales from the Austin electric-vehicle producer rose 9.3% from a year earlier to 84,159 units, a tally that came in firmly below June levels even as the carmaker unveiled two major price cuts in the span of three days.
Tesla also followed those cuts with another set of reductions last Friday, on top of rebates for buyers in the U.S., China and Europe as part of its "Refer and Earn" program.
- Get exclusive access to portfolio managers and their proven investing strategies with Real Money Pro. Get started now.
