Tesla drives back into positive territory after full-year guidance reassures investors
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Tesla (NASDAQ:TSLA) turned around a premarket loss and moved into positive territory late on Monday morning as investors sized up the Austin-based company's Q3 deliveries report.
Analysts noted that the deliveries miss was tied to longer than expected downtimes of factories in Shanghai and Austin. Wedbush Securities analyst Dan Ives said the downtimes were likely to have led to ~20k units shift into Q4. "With price cuts mostly in the rear view mirror providing stability in prices going forward, we believe Tesla is now set to be entering the next stage of growth for the company globally with the Model 3 refresh front and center in China and Cybertruck production set to kick off beginning around Halloween," he noted. Crucially, Tesla (TSLA) remains committed to the target of 1.8 million deliveries for the year.
Earlier on Monday, Tesla (TSLA) disclosed that it produced 430,488 vehicles and delivered 435,059 vehicles during Q3. The electric vehicle maker said a sequential decline in volumes was caused by planned downtimes for factory upgrades, as discussed on the most recent earnings call. Of note, 4% of the units were subject to operating lease accounting. Crucially, Tesla's (TSLA) 2023 volume target of around 1.8 million vehicles remains unchanged. During Q2, Tesla (TSLA) delivered 466,140 electric vehicles to easily beat estimates for around 445,000 units. The company produced 479,700 vehicles in the same period. In the first quarter of 2023, Tesla delivered 422,875 vehicles and produced 440,808 units.
Shares of Tesla (TSLA) were up 0.40% at 11:03 a.m. Within the EV sector, the biggest advancers on Monday were Fisker (FSR) +3.2%, Blink Charging (BLNK) +1.5%, and Xpeng (XPEV) +0.8%. Notable decliners included Canoo (GOEV) -7.2%, Workhorse Group (WKHS) -6.0%, and Faraday Future Intelligent Electric (FFIE) -5.3%.

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