Tesla reported 486,532 vehicle deliveries for the third quarter, which is a 2% decrease from 497,099 deliveries a year earlier but an increase from the second quarter's 480,126. Analysts had anticipated around 461,100 deliveries, making Tesla's performance slightly better than expected.
The majority of deliveries came from the Model 3 sedan and Model Y SUVs, which together accounted for 98% of total deliveries. Despite this positive news, Tesla faces significant pressure from rising competition, particularly from Chinese manufacturers like BYD and Xiaomi, which offer more affordable electric vehicles.
Additionally, Tesla is dealing with the repercussions of a consumer backlash against CEO Elon Musk and the loss of a federal tax credit due to changes in legislation. The company's stock has dropped 21% this year, underperforming its tech peers.
Morgan Stanley analysts noted that this quarter's deliveries would be a tough comparison against last year's record quarter and the previous quarter's performance, where deliveries exceeded production. Tesla also reported deploying 13.7 GWh of energy storage products, a slight increase from the previous quarter and year.
The International Energy Agency's report indicates that global EV demand is rising, driven by factors like the Iran conflict and high gas prices, which may benefit Tesla in the long run. The company is set to report its third-quarter earnings on October 21