Tesla Breaks a Record But Didn't Live Up To Expectations

Tesla shares fell after electric vehicle maker Tesla announced its third-quarter production and delivery figures. According to estimates compiled by FactSet, Tesla reported a total of 343,000 deliveries and 365,000 vehicles produced during the quarter. And that didn't meet analysts' expected delivery numbers of 364,660 vehicles.

Total production increased from the previous quarter of 2022, which the company said produced 258,580 cars. Tesla produced 19,935 of the more expensive Model S and X vehicles in the third quarter, and 345,988 of the more popular Model 3 and Y vehicles, according to its report. So why didn't it break the record and meet expectations? Let's move on to the details of our news.

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Details About Tesla's Record Numbers That Don't Satisfy Investors

Namely; Tesla faced increasing troubles, executive turnover and rising commodity prices at its new factories in Germany and Texas in the third quarter of 2022.

Wall Street analysts were also split over the electric vehicle maker's report. And the falling stock price shows that investors are worried about the delivery numbers.

“The focus on Tesla's investment in electrical efficiency and battery technology makes it difficult to track them in the short term,” said Jeffrey Osborne, Cowen's general manager of Energy, Sustainability and Mobility Technology, following the third-quarter delivery report. Cowen has a "market performance" rating on Tesla stock and a price target of $244 per share.

In a note following the delivery report, AB Bernstein senior research analyst Toni Sacconaghi wrote that he now considers Tesla's ability to achieve 50% delivery growth, its guidance range for fiscal 2022, looking "unlikely". “Tesla attributed its lack in delivered units to increased transit cars at the end of the third quarter and difficulties in securing vehicle carrying capacity and at a reasonable cost.” However, he noted that vehicle production lagged behind analysts' expectations.

However, the firm expects the company's margins to look good in the second half of the year. Bernstein has an "underperforming" rating on Tesla stock and a price target of $150 per share.

Deutsche Bank's research analyst, Emmanuel Rosner, was more optimistic about Tesla overall, writing that the firm saw potential for Tesla's humanoid robot concept called Optimus. He also noted that Tesla continues to work on its self-driving technology and supercomputer called Dojo for artificial intelligence.

The firm maintains its price target of $400 per share. And the firm sees Tesla as "one of the most compelling stories in the auto industry."

Tesla plans to report its third-quarter earnings on October 19, 2022.