The Reasons Behind Drop in Tesla Stock
Tesla Inc (TSLA )8.61% When the business revealed vehicle deliveries for the third quarter that were below Wall Street’s estimates, the stock price began trading lower on Monday.
Tesla reported quarterly production and deliveries of 365,923 and 343,830 vehicles, respectively. Deliveries consisted of 18,672 Model S and Model X automobiles and 325,158 Model 3 and Model Y vehicles. The number of packages sent out was below forecast but higher than the second quarter’s 254,695.
Tesla explained “Historically, our delivery volumes have skewed towards the end of each quarter due to regional batch building of cars. As our production volumes continue to grow, it is becoming increasingly challenging to secure vehicle transportation capacity and at a reasonable cost during these peak logistics weeks,”
“In Q3, we began transitioning to a more even regional mix of vehicle builds each week, which led to an increase in cars in transit at the end of the quarter. These cars have been ordered and will be delivered to customers upon arrival at their destination.”
Tesla also said it would provide financial data for the third quarter after the market closes on Tuesday, October 19.
The 52-week range for TSLA stock price is $402.66 up to $206.85 down.