Tesla (NASDAQ: TSLA) stock price tumbles after reporting lower deliveries in the third quarter. Although its Q3 deliveries hit a new record, the number is below from Elon Musk’s target of 100K.
Lower Deliveries Impacted Sentiments
Elon Musk was anticipating hitting 100K deliveries in Q3. The actual deliveries hit 97K during the third quarter. Its vehicle production hit a new record of 96,155 in the third quarter. The delivery count includes 79,600 Model 3s and 17,400 Model S/X cars.
Tesla stock price trades around $240 at present. Its shares have traded in the range of $240 over the last couple of months. The narrow stock price movement is due to traders’ concerns over increasing market competition. Lower vehicle deliveries are likely to create additional pressure on share price movement.
Strong Backlog for Fourth Quarter
The company says they are entering the fourth quarter with a record order backlog. This means the company is set to generate a new production record in the fourth quarter.
It’s all of Model 3 orders are received from new customers. This clearly reflects strong organic demand. The company claims they are aggressively focusing on improving their production potential.
Tesla’s delivery count only includes vehicles after the transfer of ownership to customers.
Market Pundits are Pessimistic
Some market pundits believe Tesla could also miss its expectations from Chinese markets in the coming quarters. This is due to slow economic growth from the second-largest economy.
UBS has cut its guidance for Chinese auto sales growth in fiscal 2019 to -8%. This is down from the previous forecast for a 2% growth.
Morgan Stanley is also pessimistic about Tesla’s vehicle deliveries in fiscal 2019. The firm expects Tesla to deliver 345K units this year. Tesla anticipates deliveries to stand around 360K to 400K.
Tesla’s stock price is likely to stay under pressure in the coming days. This is due to lower deliveries and macroeconomic headwinds.