Tesla missed the delivery estimates just by a whisker but it has impacted the stock price in early trading hours on Monday.
The electric carmaker and automobile giant Tesla reported the sales numbers for the third quarter (Q3) of 2022. The total deliveries for the third quarter stood at 343,000 vehicles but missed analysts’ estimates of 358,000 vehicle deliveries.
As tesla reported, its Model 3 and Y vehicles grabbed the lion’s share of deliveries at 345,988. On the other hand, the company also produced 19,935 of its higher-priced Model S and X vehicles. The good thing is that the total production of the vehicles also increased from the previous quarter when it made 258,580 vehicles. the electric carmaker stated:
“Historically, our delivery volumes have skewed towards the end of each quarter due to regional batch building of cars. 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.”
Tesla chief executive office Elon Musk also stated that he would aim for steadier deliveries in between quarters. This is because customer experience usually suffers in the end-of-quarter rush. The company also added that its delivery count is conservative and that the final number would vary by 0.5%.
During Q3 of 2022, Tesla faced issues with soaring commodity prices as well as some issues at its factories in Texas and Germany. Also, in July, the company has to suspend most of its production in the Shanghai factory to make upgrades to the plant. But as per the China Passenger Car Association data, in the month of August, the company’s production and deliveries in China had rebounded.
Tesla and Its Headcount Changes
During the month of July, Tesla laid off an entire AI Office and reduced headcounts in other departments as well. Besides, Elon Musk made it mandatory that all Tesla employees should work from the Tesla office for at least 40 hours a week.
Following this, some employees chose to resign while others were dismissed. However, those who returned to the office found over-crowded conditions that persisted through the third quarter. This also hindered the normal working conditions at some Tesla facilities such as its first US car factory in Fremont, California.
The share price of Tesla has taken a nosedive falling 5.5% in the early morning trading hours on Monday. Considering this drop, Tesla stock (NASDAQ: TSLA) is likely to open at $250 on Monday’s trading session.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.