What's happened
Tesla's stock has dropped 7% following its third-quarter vehicle delivery report, which showed 462,890 sales. Analysts express concerns about the company's growth potential, especially with increasing competition from Chinese EV makers, which reported record sales in September. JPMorgan has set a price target of $130 for Tesla shares, indicating significant downside risk.
Why it matters
What the papers say
According to Business Insider UK, Tesla's stock has been volatile, dropping significantly after its latest delivery report. Analyst Ryan Brinkman from JPMorgan noted that Tesla might not grow its full-year unit volumes for the first time, which could lead investors to reassess the company's valuation. Meanwhile, competitors like BYD and Li Auto are capitalizing on the market with record sales, as reported by the South China Morning Post. This competitive pressure is compounded by Tesla's need to deliver over 520,000 vehicles in Q4 to meet its annual target, a feat that analysts deem unlikely given current trends.
How we got here
Tesla's recent delivery report marked its first quarter-over-quarter increase in 2024, but the numbers fell short of analyst expectations. The company is facing heightened competition from Chinese EV manufacturers, which have been gaining market share through aggressive pricing and new model launches.
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Tesla, Inc. is an American electric vehicle and clean energy company based in Palo Alto, California. The company specializes in electric vehicle manufacturing, battery energy storage from home to grid scale and, through its acquisition of SolarCity, solar
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Elon Reeve Musk FRS is an engineer, industrial designer, technology entrepreneur and philanthropist. He is the founder, CEO, CTO and chief designer of SpaceX; early investor, CEO and product architect of Tesla, Inc.; founder of The Boring Company; co-foun
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China, officially the People's Republic of China, is a country in East Asia. It is the world's most populous country, with a population of around 1.4 billion in 2019.
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BYD Company Limited or BYD is a publicly listed Chinese multinational manufacturing conglomerate headquartered in Shenzhen, Guangdong, China.