Tesla's Q3 Vehicle Deliveries Fall Short Amid Stiff Competition in China and Europe
Tesla delivered fewer vehicles than analysts expected in Q3, facing stiff competition in China and Europe. Growing interest in hybrids, lack of European subsidies, and strong Chinese competitors affected deliveries. Tesla now needs a record-breaking Q4 to maintain its 2023 delivery targets.
Tesla handed over fewer vehicles than analysts expected in the third quarter, facing stiff competition in China and Europe. This has put the electric-vehicle maker at risk of its first-ever decline in annual deliveries.
Shares of the world's most valuable automaker dropped more than 6% in morning trading on Wednesday, potentially erasing nearly all gains for the year. Growing consumer interest in hybrids, a lack of European subsidies, and strong competition in China were significant obstacles. Chinese automakers like BYD and Xpeng are expanding rapidly in the largest automotive market, aided by local government subsidies.
Tesla reported a 6.4% rise in vehicle deliveries from July to September, totaling 462,890 units. This fell short of the estimated 469,828 according to 12 analysts polled by LSEG. Gadjo Sevilla, senior tech analyst at eMarketer, noted that missing expectations could indicate challenges in meeting 2024 delivery targets and sustainable growth prospects.
(With inputs from agencies.)
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