What's happened
Tesla's third-quarter vehicle deliveries rose 6.4% to 462,890 but fell short of analyst expectations, causing shares to drop. The company must deliver a record 516,344 vehicles in Q4 to avoid its first annual decline in deliveries amid rising competition and changing consumer preferences.
Why it matters
What the papers say
According to Business Insider UK, Tesla's stock has dropped 7% since reporting its Q3 deliveries, with JPMorgan setting a price target of $130, indicating potential downside risk. The NY Post highlighted that Tesla's deliveries fell short of estimates, raising concerns about meeting overall targets for 2024. The Guardian noted that rising competition and a lack of subsidies are impacting Tesla's performance, while Business Insider UK pointed out that the company's aggressive financing incentives have only recently begun to show results. The South China Morning Post reported that Chinese EV makers are capitalizing on discounts and promotions, further intensifying competition for Tesla.
How we got here
Tesla's recent struggles stem from increased competition in the EV market, particularly from Chinese automakers like BYD and Xpeng, and changing consumer preferences towards hybrids. The company has also faced challenges in meeting delivery targets amid a lack of European subsidies.
More on these topics
-
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
-
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
-
BYD Company Limited or BYD is a publicly listed Chinese multinational manufacturing conglomerate headquartered in Shenzhen, Guangdong, China.