Breaking News
Investing Pro 0
Cyber Monday Extended SALE: Up to 60% OFF InvestingPro+ CLAIM OFFER

Tesla Now 'Unlikely' to Hit Its 50% Delivery Growth Goal for 2022 - Analysts

Stock Markets Oct 03, 2022 06:10AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
Tesla (TSLA) Now 'Unlikely' to Hit Its 50% Delivery Growth Goal for 2022 - Analyst
 
TSLA
-6.37%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Senad Karaahmetovic

Shares of Tesla (NASDAQ:TSLA) are down over 4% in pre-open Monday after the electric vehicle (EV) giant reported lower-than-expected Q3 deliveries.

Tesla said it managed to deliver 343,830 units in Q3, lower than the 359,162 vehicle deliveries expected, according to Refinitiv. The Bloomberg consensus stood at 357,938 while estimates compiled by Street Account showed that analysts were expecting Tesla to report deliveries of 364,660 cars.

"Historically, our delivery volumes have skewed towards the end of each quarter due to regional batch building of cars," Tesla said in a statement.

"As our production volumes continue to grow, it is becoming increasingly challenging to secure vehicle transportation capacity and at a reasonable cost during these peak logistics weeks."

While Tesla blamed lower deliveries on transit and logistics challenges, CEO Elon Musk said in a tweet that Tesla is aiming “for steadier deliveries intra-quarter” that will “reduce expedite costs & relieve stress on Tesla team.”

“Customer experience suffers when there is an end-of-quarter rush. Steady as she goes is the right move,” Musk added on Twitter.

Analysts at Goldman Sachs said the pullback in Tesla share price is understandable as deliveries are a “key driver of the stock.” They lowered the 2022 delivery estimate to 1.37 million from 1.4 million and still expect the EV company to deliver 461,000 units in Q4. As a result, the 2022 EPS estimates are also revised modestly lower.

“Given that wait times for vehicles in China have declined to a few weeks and macroeconomic conditions have become more difficult in general, some investors may view the weaker 3Q deliveries as the beginning of a period of sustained demand weakness. However, we believe the company remains well positioned to drive solid volumes and also margins/FCF going forward, and the vehicles in transit issue is a mitigating factor for the 3Q delivery miss,” they wrote in a client note.

For Bernstein analysts, Tesla’s goal of 50% delivery growth for 2022 “appears unlikely.” They were expecting Tesla to deliver between 370,000 and 375,000 units.

“We expect Tesla's 2H margins to be very good due to significantly higher volumes and improving ASPs given price increases from late last year. We forecast automotive GMs (ex credits) of 28.5% for Q3 and 29.5% for Q4, but see the potential for upside to our forecasts,” they also said in a note.

Finally, Wedbush analysts said the Q3 delivery numbers show that Tesla clearly experienced delivery challenges. The analysts are calling for Q4 deliveries to come in the 475K+ range as the unit set-up is “very robust.”

“In a nutshell, this quarter was nothing to write home about and the Street will be disappointed by the softer delivery number in 3Q. That said, we view this more of a logistical speed bump rather than the start of a softer delivery trajectory into 4Q/2023 and remain bullish on the Tesla story,” they said in a note.

Tesla Now 'Unlikely' to Hit Its 50% Delivery Growth Goal for 2022 - Analysts
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Don Vo
Don Vo Oct 03, 2022 7:51AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Tesla should be down to 1 dollar per
GJ Dan
upORdownWEgo Oct 03, 2022 7:51AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Haaahaha, still bu t t hurt that you didn't get in early
GJ Dan
upORdownWEgo Oct 03, 2022 7:51AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Haaahaha, still bu t t hurt that you didn't get in early
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email