Tesla shares fall after third-quarter deliveries kept demand concerns alive

Shares of Tesla Inc. fell more than 5% following the record-breaking quarterly sales announcement by Silicon Valley carmaker Wall Street, but failed to allay concerns about the company’s long-term goals.

Tesla DSLA,
It said on Friday that it had delivered 139,300 vehicles in the third quarter, compared to expectations of 137,000 vehicles, a consensus of 140,000 in recent days.

The company delivered 124,100 Model 3 and Model Y vehicles, up 56% from the previous year’s quarter and compared to expectations for 117,300. It offered 15,200 Model S and Model X vehicles, with 100 vehicles ashamed of the factset consensus.

“These numbers are particularly impressive in a year when most automakers are producing and delivering fewer vehicles,” said Carl Brower, a researcher at iSeeCars.com. “With so many factories coming online next year, there are all indications that Tesla’s size will continue to grow by 2021 and beyond.”

RBC Capital had requests for a period close to that of Analyst Joseph Speck.

“We hope there may be some supply barriers, but the Bears may also point to some potential demand concerns,” Spock said. “Some initial data we saw in Europe suggests that sales may be softer than we expected, and we continue to believe that Model 3 sales in the US have fallen y / y (but Model Y is helping US demand).”

On last week’s “Battery Day” CEO Elon Musk reiterated Tesla’s goal of selling about half a million cars this year, or 30% to 40% more than in 2019.

To reach the lower end of its target or 478,000 vehicles, Tesla will have to deliver 159,000 vehicles, Spock said.

“This is not an unattainable goal in our view, it largely depends on the fact that the (Shanghai factory) rate is constantly increasing and (Fremont, Calif., Factory) some more performance dependent,” he said. “But getting up to 500k is getting harder.”

Wet Bush’s Dan Ives was very optimistic, saying that Tesla “continues to deny the bears given the dark global COVID economic background.” Tesla scored “on the high end of positive gossip expectations for the quarter”.

Yves matched that China is “a major strength this quarter.” The number of deliveries should be translated as “a good EPS upside and a street for 3 cu.

Friday’s stock weakness was “a knee-jerk reaction to this (morning) tape after a parabolic run in stocks, however when the street digests this eye-popping oil, the stock should be high in the coming days and weeks,” he said.

Related:U.S. auto sales are down 9.7% in Q3, but the news isn’t all that bad

Tesla and Ford Motor Company F,
+ 1.85%
One of the last car makers to report deliveries on Friday. General Motors Co. G.M.,
+ 0.13%
On Thursday it reported a 10% decline in the third quarter, highlighting the strength in retail sales of pickup trucks and SUVs. Ford saw its third-quarter sales fall 4.9%.

Car sales as a whole showed strength in September, reaching 16.4 million units per year and above expectations for the third consecutive month. Evercore ISI investigators said the cargo was still “tight” and more tight for trucks.

Retail sales “showed an encouraging trend of roughly flat YOY (Navy sales) and the trend of positive rate change improved again,” they said.

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