The US stock market experienced horrifying first 9 months of the year 2022. It looks like most investors have received at least a temporary interval. On Monday, the future contracts on key market standards were running soaring on the 1st day of the 4th quarter. However, the Nasdaq Composite only scarcely controlled to interfere into positive territory.
On Monday morning, the descending move in Tesla was the major offender doom the Nasdaq. Shareholders adversely behaved to the 3rd quarter unit volume numbers of the EV (electric vehicle) company. However, there were multiple reasons to defend their interest. Most investors were found ignoring more encouraging news that potentially should have kept them more optimistic about Tesla’s future.
Disappointment with the Deliveries of Tesla Vehicles
On Monday, the stock of Tesla was down at least 5% prior to a product’s official market trading. This response came just after the EV pioneer’s report on the number of vehicles delivered to customers. Keep in mind that these vehicles were delivered during the months of July, August, and September 2022.
On Sunday, Tesla announced that the company delivered at least 343,800 vehicles in the 3rd quarter. It was an increase from the approximately 254,700 Tesla vehicles customers received in the 2nd quarter of 2022. It was higher than the 310,000 EVs that Tesla delivered to its consumers during the first 3 months of 2022.
Meanwhile, the record didn’t encounter the prospects of those following the business operations of Tesla. Analysts monitoring the EV stock have suggested the number could reach between 350,000 and 370,000. It could also mark the average of around 360,000 vehicles. The lower number traditionally indicates immediate selling just after beginning the official market release of the product.
Why was Tesla Unable to Meet Expectations?
Tesla also explained why its delivery numbers dropped. However, the company didn’t experience any shortage of finished cars to deliver to its customers. Some other auto manufacturers have had to cut their vehicle delivery. They were unable to get the essential components and parts to finalize the production of their vehicles.
It is important that Tesla pointed out its production numbers have increased. But the company is experiencing issues to line up the essential logistical resources in providing its vehicles to customers. Critical issues in the transportation system also dramatically increased the shipping costs, especially during the end of each quarter period.
However, Tesla has shown its dedication and concentration to its vehicle movement efforts. The company has collected greater benefits from its production network growth to enhance its vehicle manufacturing efforts. Tesla has more benefits in performance and efficiency but it needs much better logistics handling. The company is dedicated to delivering more vehicles at the end of the last quarter.
Tesla is Experiencing a Timing Issue Instead of a Production
Most traders determined that they could experience more tension due to decreasing demand for Tesla vehicles. Moreover, customers are pulling back on a host of discretional products, especially on key-ticket items. Most Tesla investors were focused on the number of production figures, which boosted to around 366,000 vehicles.
Meanwhile, the production and delivery numbers were found close to each other in the past. Some ended quarters have shown high production with low deliveries and some showed the opposite figures. But now the key issue for Tesla is the timing with a difference of 22,000 vehicles. However, it is easy to resolve compared to the production issues its competitors are experiencing.