Topline
Tesla shares rose over 5% on Friday after it reported third-quarter deliveries that beat analysts’ estimates, delivering 486,532 vehicles worldwide with 98% attributable to its Model 3, Model Y vehicles—positive news for the company as it works to avoid another year of declines.
Smithtown, N.Y.: New Tesla electric vehicles fill the car lot at the Tesla retail location on Route 347 in Smithtown, New York on July 5, 2023. (Photo by John Paraskevas/Newsday RM via Getty Images)
Newsday via Getty Images
Key Facts
Tesla shares were up 5.29% as of 12:10 p.m. EDT, trading at $372.85.
The 486,532 deliveries, a third-quarter figure the company shared on Friday morning, beat analysts’ 463,761 average prediction.
The third-quarter number is 2% lower than the 497,009 vehicles Tesla reported delivering a year earlier.
Tesla’s Model 3 and Model Y accounted for 478,237 of those deliveries, with only 8,295 coming from other vehicles.
Tesla will need at least 311,448 deliveries in its fourth quarter to meet last year’s total and avoid a third year of declines.
FORBES VALUATION
Friday’s rise added $53.2 billion to Tesla CEO Elon Musk’s net worth, bringing the estimate to $972 billion as of 12:10 p.m. EDT, according to the Forbes Real-Time Billionaires list.
KEY BACKGROUND
Friday’s positive news for Tesla’s core auto business comes after it reported 480,126 in second-quarter deliveries. The company has been spending significantly on AI, autonomous driving and robotics, reporting $5.8 billion in capital expenditures in the second quarter, contributing to $1.1 billion in negative free cash flow. Tesla has faced heightened competition from Chinese electric vehicle makers like BYD, and is working to recover from consecutive annual vehicle sales declines.
WHAT TO WATCH
Tesla said it will report its third-quarter earnings after market close on Oct. 21, which will give investors a better look at whether these deliveries are stabilizing automotive profit margins.
Leave a comment