Tesla Inc TSLA’s third-quarter Model 3 deliveries fell far short of expectations with just 220 against previous guidance of 1,500 and Baird Equity’s worst-case estimates of 300.
Production figures also missed forecasts, as the automaker completed just 260 Model 3s due to “production bottlenecks” driven by longer-than-expected activation of manufacturing subsystems.
“It is important to emphasize that there are no fundamental issues with the Model 3 production or supply chain,” the press release read. “We understand what needs to be fixed and we are confident of addressing the manufacturing bottleneck issues in the near-term.”
While Model 3 may have disappointed, Tesla reported a 17.7-percent sequential increase and 4.5-percent year-over-year increase in combined Model S and Model X deliveries, representing the segments’ best quarterly performances.
Not including orders en-route at the quarter’s close, the rate so far exceeded expectations that it put the firm on pace to beat first-half deliveries by several thousand more units than the initially estimated 47,077.
Contributing to a total of 26,150, the firm delivered 14,065 Model S and 11,865 Model X units against Baird’s respective estimates of 15,000 and 10,800.
Altogether, Tesla anticipates full-year deliveries around 100,000 for a 31-percent increase over 2016.
The stock fell about 1 percent to $337.93 in after-hours trading.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
