Q3 Delivery & Production Report Reaction (10.02.23)
Oct 2, 2023
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In this podcast, they analyze Tesla's Q3 delivery and production numbers, discuss stock reactions, production figures, and the importance of having cars available for immediate purchase. They also talk about stock performance, growth comparison, interest rates, Highland deliveries, Tesla updates, and the upcoming Cybertruck auction.
Tesla's Q3 production and delivery numbers fell short of analyst consensus, potentially due to factory downtime and reduced inventory.
Despite these challenges, Tesla's overall growth remains impressive year over year, and upcoming product updates may contribute to future demand and growth.
Deep dives
Tesla Q3 Delivery and Production Report Overview
Tesla released its Q3 delivery and production report, revealing that production reached 430,488 vehicles and deliveries amounted to 435,059 vehicles. While production met expectations, deliveries fell below analyst consensus. However, these figures were impacted by factory downtime during the quarter, particularly at Gigafactory Texas and Gigafactory Shanghai. Tesla maintained its 2023 volume target of around 1.8 million vehicles, and the Q3 earnings report will be released on October 18th.
Insights into Production and Deliveries
Production for Model S and Model X saw a significant decline, while Model 3 and Model Y exceeded expectations. Notably, recent price cuts for Model S and Model X may have contributed to lower production figures for these models. Tesla displayed a reduced inventory of around 16 days, with approximately 94,000 vehicles in stock, primarily in transit or as showroom vehicles. However, concerns were raised about potential demand constraints, trading day performance, and the impact of inventory on sales.
Potential Implications and Future Considerations
Despite lower Q3 production and some concerns about demand and inventory, Tesla's overall growth remained impressive year over year. With roughly 476,000 deliveries needed in Q4 to reach the 1.8 million vehicle target, Tesla may need to navigate additional production challenges, such as the ramp-up of Highland Model 3 production and the uncertainty surrounding other factories. However, Tesla's low inventory levels, relative to competitors, and upcoming product updates, including the highly anticipated Cybertruck, may contribute to future growth and demand.
➤ Tesla has released Q3-23 delivery and production numbers
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Executive producer Jeremy Cooke Executive producer Troy Cherasaro Executive producer Andre/Maria Kent Executive producer Jessie Chimni Executive producer Michael Pastrone Executive producer Richard Del Maestro Executive producer John Beans
Disclosure: Rob Maurer is long TSLA stock & derivatives
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