Tesla Shares Plunge as Big Miss on EV Deliveries
Oct 3, 2022 By MarketDepth
Tesla (TSLA:NYQ) is down Monday morning as the company said vehicle deliveries didn’t meet expectations as logistical issues came into view. Shipments of EVs were in progress as the quarter came to a close which caused the biggest drop in the stock since the summer.
Tesla stock is down 9% intraday and about 30% on the year. The company has been diligent in hitting bigger and bigger targets as demand for the vehicles grow, but with transportation issues coming into play they didn’t meet that target.
“As our production volumes continue to grow, it is becoming increasingly challenging to secure vehicle transportation capacity and at a reasonable cost during these peak logistics weeks. In Q3, we began transitioning to a more even regional mix of vehicle builds each week, which led to an increase in cars in transit at the end of the quarter.”Tesla said in a statement
Tesla has continuously beat delivery targets by ramping up production by 45% on the year. The company is forging forward but competition from bigger automakers is starting to heat up. With most flagship brands releasing their own EVs, Tesla will need to keep up production to continue to be the leader in the space.