Live Chat

Tesla stock slumps on delivery numbers miss

Vehicle delivery figures miss sends Tesla stock tumbling

Tesla stock fell over 5% on Tuesday following the announcement of first-quarter vehicle delivery numbers that significantly missed analysts' expectations, according to a statement released by the electric vehicle (EV) manufacturer.

Tesla shares closed Tuesday trading at $166.63, down 4.9%. At the time of writing on Wednesday, TSLA stock was down 1.37% in premarket hours at $164.27.

The company reported it had delivered 386,783 vehicles during the quarter, missing the anticipated 457,000 vehicles forecasted by FactSet and showing a decline from the 423,000 vehicles delivered in the same period last year.

“Decline in volumes was partially due to the early phase of the production ramp of the updated Model 3 at our Fremont factory and factory shutdowns resulting from shipping diversions caused by the Red Sea conflict and an arson attack at Gigafactory Berlin,” Tesla said in its release.

Deliveries of Model 3 and Model Y vehicles, which totaled 369,783, accounted for most of the figures.

Tesla also disclosed production of 433,371 units in the first quarter.

Choose your points of movement

Сalculate your hypothetical P/L (aggregated cost and charges) if you had opened a trade today.

Market

Currency Search
Currency
Index
Shares
ETFs
Bonds
Crypto
Commodity

Instrument

Search
Clear input
Occidental
Siemens
Morgan Stanley
GSX Techedu
Marston's
Alibaba
Skillz Inc
Macy's
Lemonade
Lululemon
Plug Power
Amazon.com
Verizon
Thermo Fisher
Mondelez
General Motors
LVMH
IAG
Cinemark
PETROCHINA
Royal Bank Canada
Anglo American
F5 Networks
Nikola Corporation
Zoom Video Communications
Air France-KLM
Comcast
UniCredit
The Cheesecake Factory
Barrick Gold
Bayer
Toro
Kuaishou
Gen Digital Inc
Tilray
Xiaomi
SMCI
Wish.com Inc
Adobe
DISNEY
Coinbase Inc
UiPath Inc
T-Mobile
Rio Tinto
Schlumberger
Invesco Mortgage
Hammerson
Volkswagen
Sartorius AG
ROBLOX Corp
ChargePoint Holdings Inc
UPS
Pinterest Inc
Continental
Jumia Technologies
Medtronic
PayPal
Twilio
Freeport McMoRan
UnitedHealth
SIG
Tesla
Lyft
Boeing Co
Annaly Capital
Santander
Teladoc
Li Auto
CrowdStrike Holdings
Deere
Fedex
Naspers
ProSiebenSat.1
Bilibili Inc
Costco
New Oriental
NVIDIA
Iberdrola
Gilead
American Express
Apple
Airbus
GoPro
Chevron
HSBC HK
Two Harbors Investment aration
easyJet
Inditex
BlackBerry
Anheuser-Busch Inbev
Deliveroo Holdings
Hubspot
Applied Materials
GameStop
British American Tobacco
Trade Desk
McDonald's
AMC Entertainment Holdings
Adidas
AIA
Bristol Myers
Novavax
TUI
Fresnillo
Shell plc (LSE)
Nasdaq
Ceconomy
Lithium Americas Corp
Rivian Automotive
Qorvo
MercadoLibre.com
Coca-Cola Co (NYSE)
HDFC Bank
Roku Inc
Infinera
Arista
Total
JnJ
Dave & Buster's
PG&E
ON Semiconductor
Diageo
XPeng Inc
ASML
Vodafone
Airbus Group SE
Campari
Telecom Italia
Glencore plc
HSBC
ZIM Integrated Shipping Services Ltd
Kraft Heinz
Spotify
Aurora Cannabis Inc
Etsy
Goldman Sachs
Norwegian Air Shuttle
Abbott
Snap
Linde PLC
Blackstone
Cellnex
Tencent
Barclays
Virgin Galactic
JP Morgan
Allianz
RTX Corp
Taiwan Semi
Wal-Mart Stores
Intel
DoorDash
Wayfair
SONY
II-VI
Norwegian Cruise Line
BioNTech
Palantir Technologies Inc
CNOOC
Cisco Systems
Electrolux
ALIBABA HK
Robinhood
Vonovia
British American Tobacco
SAP
Ford
Cameco
Peloton Interactive Inc.
Toyota
Amgen
AT&T
Infosys
Starbucks
Lloyds
Qualcomm
Canopy Growth
3D Systems
CarMax
LUCID
Eni
AMD
Target
IBM
FirstRand
Lumentum Holdings
Alphabet (Google)
Workday Inc
ASOS
Conoco Phillips
Moderna Inc
Trump Media & Technology Group
Fuelcell
MerckCo USA
Salesforce.com
Hermes
BASF
AstraZeneca
Christian Dior
Broadcom
Oracle
Vipshop
CCB (Asia)
Nio
Block
Uber
Accenture
Meta (Formerly Facebook)
Berkshire Hathaway
Wells Fargo
Blackrock
Rolls-Royce
Pfizer
Microsoft
Home Depot
Mastercard
Lufthansa
Marriott
AbbVie
China Life
Baidu
Eli Lilly
DeltaAir
Chipotle
BP
General Electric
eBay
Quanta Services
Netflix
Micron
Visa
Golar LNG
ADT
JD.com
American Airlines
Porsche AG
Palo Alto Networks
Teleperformance
Lockheed Martin
Upstart Holdings Inc
Delivery Hero SE
Airbnb Inc
Nel ASA
GoHealth
Shopify
Aptiv PLC
Bank of America
PepsiCo
Philip Morris
Exxon Mobil
Procter & Gamble
Beyond Meat
Snowflake
L'Oreal
Sea
Porsche
Deutsche Bank
Nike
Unilever
CAT
Prosus N.V.
Unity Software
Citigroup
Upwork Inc.
Vir Biotechnology

Account Type

Direction

Quantity

Amount must be equal or higher than

Amount should be less than

Amount should be a multiple of the minimum lots increment

USD Down
$-

Value

$-

Commission

$-

Spread

-

Leverage

-

Conversion Fee

$-

Required Margin

$-

Overnight Swaps

$-
Start Trading

Past performance is not a reliable indicator of future results.

All positions on instruments denominated in a currency that is different from your account currency, will be subject to a conversion fee at the position exit as well.

Deutsche Bank says Tesla delivery numbers down due to “demand issues” in U.S.

The discrepancy between deliveries and production implies about 46,000 EVs in inventory, “which confirms that beyond the known production bottleneck, there may also be a serious demand issue,” Emmanuel Rosner at Deutsche Bank said in a note cited by MarketWatch. He added:

“In our view, the production figure was predictably soft, but the miss was in deliveries, likely largely due to demand issues in the U.S.”

Investors are primarily concerned about the extent to which Tesla's delivery shortfall can be attributed to the factors mentioned in the announcement, as well as the surge in demand towards the end of last year — when several Model 3 buyers hurried to benefit from phasing out tax credits — versus the extent to which it reflects broader market dynamics or trends specific to Tesla, Tom Narayan at RBC Securities told MarketWatch.

According to Narayan, the slowdown in the electric vehicle market in the U.S. probably played a role, and he noted that Tesla's Model 3 and Model Y have become “somewhat saturated” in the market.

Tesla’s recent offer of one month of free Full Self Driving, its suite of advanced driver assistance features for driving in urban areas, may serve as a catalyst for the second quarter, the analyst said, adding:

“Worst case it brings folks into the show room and best case, it increases the FSD attach rate and possibly increases 3/Y deliveries. The China situation is another open question. [January and February] were very soft months for the market but that is seasonally normal”.

Tesla China sales up by 0.2%, overall EV sales grow by 33%

Further insights into Tesla's performance were revealed with data from the China Passenger Car Association, indicating Tesla sold 89,064 China-made cars in March alone. This represents a marginal 0.2% increase from the previous year, even as overall EV sales in China surged by 33%.

Compared to Tesla's modest growth, BYD Co. emerged as the dominant force in the Chinese market, with sales exceeding 300,000 vehicles in March, marking a 46% year-over-year increase.

Tesla has been grappling with increased competition in China, leading to a cautious outlook from analysts. Tesla shares have dropped 33% year-to-date and 10% over the past 12 months, in stark contrast to the S&P 500 index, which rose by 9% and 27.2% in the respective timeframes.

The Tesla earnings call at the end of January also did the stock no favors, as the EV manufacturer cautioned investors about a potential growth slowdown in 2024, sending TSLA shares tumbling by over 10%.


When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.

Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.

Latest news

Sunday, 24 November 2024

Indices

Nvidia Stock Could Increase as Musk Plans $9 Billion AI Chip Purchase

Eurozone inflation

Saturday, 23 November 2024

Indices

Week ahead: Eurozone inflation likely to confirm ECB December cut

Thursday, 21 November 2024

Indices

Asian Market Update: Hang Seng Index Falls on Baidu Slumps

Thursday, 21 November 2024

Indices

Stock Market Today: Dow and S&P 500 Post Gains Ahead of Nvidia Earnings

Live Chat