Tesla’s Lower-Than-Expected Deliveries Drop Share Prices, Make Analysts Nervous

Tesla Motors saw its share prices fall by more than 11 percent after announcing fewer-than-expected deliveries for the first quarter of the year.

The EV manufacturer delivered 63,000 vehicles in the first three months of 2019. This includes 50,900 Model 3s, which fell short of analysts’ estimates of 58,900 units according to Reuters. By comparison, Tesla delivered 90,966 cars in total during the fourth quarter of 2018.

Despite the lower than expected deliveries, Tesla has reaffirmed its prediction to deliver somewhere between 360,000 and 400,000 vehicles this year, adding that the orders for the Model 3 in the US outpaced what the carmaker could deliver during the first quarter.

Frank Schwope, an Nord LB analyst said that Tesla’s numbers are “more shocking than disappointing”, adding that there are doubts whether Tesla can deliver 400,000 cars in 2019. Tesla’s history of missing its arguably ambitious targets make it more difficult for investors and analysts to believe the company’s 2019 projection.

RBC analysts added that the Model S and Model X deliveries are “very dissapointing”, estimating that the lower numbers will result into over $1 billion shortfall in revenue compared to previous estimates.

In addition, Musk’s legal fight with the SEC has raised worries from Tesla’s investors about the potential of the company’s founder being restricted on his activities. His lawyers will argue that Musk didn’t violate a fraud settlement with the SEC and should not be held in contempt in a federal court hearing.

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  • Jason Miller

    These “analysts” are annoying.

    • ME

      They are paid by big oil companies and most likely the UAW.

      • Galaxium

        No, they’re investment bankers from various banks and other financial institutions.

        Seriously, actually read some of their write-ups on Tesla, if you can manage to find them. They’re interesting and provide in-depth analysis on Tesla’s situation and finances.

      • Mr. EP9

        Nope. That’s just conspiracy levels of nonsense.

        • ME

          Ha!

    • Galaxium

      No, they’re often investment bankers who are specialized specifically in the auto sector. They’ve been watching these companies for decades.

      The write-ups from various banks on Tesla have been intriguing and how they have been analyzing their balance sheets and reports.

      • Jason Miller

        Don’t care, still annoying.

    • ME

      And Jealous of Mr. Musk’s vision and brilliance.

      • Mr. EP9

        Wrong.

  • lagunas3ca

    33% of all sales of sedans priced between $40,000 and $60,000 in the second half of 2018. Average selling price for a Model 3 sedan last year? $57,000.

  • TheBelltower

    The S and X orders and deliveries were impacted by the elimination of the base-level 75kwhr battery options. So it effectively hiked the cost of entry substantially for those two models. Presumably, this was done to streamline production as Tesla/Panasonic would transfer the 18650 cell lines (the batteries in the S&X, not the 3) from Japan to the US. from Japan to the US this month.

    Not saying that this is necessarily a positive thing for the stock value, but it does show that they Tesla is able to constantly rework their supply chain to be more efficient… something that legacy automakers are incapable of doing. It would be helpful for investors to understand these things.

  • charlotteharry57

    One week, we hear Elon’s blather about fantastic sales and this week, it’s this. I really could care less anymore.

    • The company went from selling single digit hand-made cars to selling hundreds of thousands of cars in a decade. That’s mind blowing. They are on track for selling millions of cars.

  • Shares seem to be doing fine… Way too much fear-mongering.

  • Mr. EP9

    Oh come on, it’s only an 11% drop. That’s nothing……oh.

  • alexxx

    Come on…model 3 is best selling premuin car…what are you talking…?

  • Matteo Tommasi

    IF ONLY they made good cars, this could be reversed.

  • Six_Tymes

    I know most will not agree with me here, I still think a lot of this can be attributed to over pricing. All cars are over priced, not just Teslas. A Honda civic for as high as 25 grand when options equipped? that is insane. Hyundai is no better, all brands have become over priced, its ridiculous.

    • Paulbe

      I agree, and will raise you a US economy that is actually in deterioration, with stagnant wages and sources of debt largely tapped out.

    • TheHake

      You should see the prices in Europe. A normal Golf (not GTI or R) with some options ticked can easily get to €45k. You guys don’t know how good you have it.

  • TheHake

    Model S and Model X deliveries are “very dissapointing”-
    With more and more countries now lifting the ridiculous tax incentives on these rich man toys, that is hardly surprising. Plus if Tesla delivered 50k cars in 1/4 of the year, how on earth would they reach 400k in the other 3/4?

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