Home Finance News Tesla’s stock plunges as deliveries fail to meet modest expectations.

Tesla’s stock plunges as deliveries fail to meet modest expectations.

0
Tesla’s stock plunges as deliveries fail to meet modest expectations.

Shares of Tesla Inc. plummeted after the company reported disappointing third-quarter deliveries, which fell below already-reduced expectations. In premarket trading, Tesla’s stock dropped 3.2%, following a 4.0% increase in the previous two days leading up to the data release. The company disclosed that it produced a total of 430,488 vehicles during the third quarter, with 435,059 vehicles being delivered. While production saw a 17.6% increase compared to the same period last year, deliveries rose by 26.5%. However, these figures were notably lower than the FactSet consensus for deliveries, which had been revised down to 461,000.

Analysts had been adjusting their expectations amid concerns surrounding slowing demand in China and limited volume growth, as well as the refresh of the lower-priced Model 3. Over the past three months, Tesla’s stock has already experienced a decline of 4.4%, while the S&P 500 index has fallen 3.7%.

This news of disappointing deliveries was a blow to Tesla, causing a significant drop in its stock price. The company’s production numbers for the third quarter fell short of market expectations, leading to concerns about slowing demand and limited growth. The lower-priced Model 3’s refresh, coupled with analysts lowering their delivery projections, contributed to the declining investor sentiment. The stock’s decline in value over the past three months further reflects the ongoing challenges that Tesla is facing in maintaining market confidence.

Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here