In anticipation of Tesla’s upcoming third-quarter unit sales report, investors should brace themselves for a potentially chaotic outcome. Wall Street estimates for Tesla’s unit sales have been inconsistent, with analysts initially projecting 473,000 units and the current consensus estimate at about 455,000 units. These estimates have deviated more than usual for this quarter, with the range spanning from 438,000 units to 511,000 units. However, when eliminating the extreme values, the estimated range narrows down to approximately 440,000 units to 485,000 units. Low unit sales may raise concerns about electric vehicle (EV) demand, especially with the presence of rising interest rates and increased EV competition.
Tesla’s third-quarter results are expected to either stay flat, slightly decrease, or experience minimal growth compared to the previous quarter. Analysts attribute this projected slow growth to planned plant downtime for facility upgrades, as the company is preparing to release a refreshed Model 3 in Europe and China. Investors are closely monitoring not just the delivery numbers but also the production aspect. They want to see production and sales figures more closely aligned to avoid an accumulation of inventory. Tesla stock tends to react positively when delivery numbers surpass expectations, as it suggests a potential increase in earnings.
There are various factors impacting Tesla’s stock performance, and the quarterly delivery figure is just one of them. The upcoming report is likely to generate trading volatility, given the importance placed on these figures by investors. It is uncertain how the stock price will react this quarter, as the recent stock drop is partially attributed to overall market decline. The S&P 500 and Nasdaq Composite index have both fallen over the same period. Nonetheless, investors will closely scrutinize the unit sales report, as it will provide insights into the state of EV demand and Tesla’s production capabilities.