Tesla released its delivery results for the third quarter of 2024, delivering 462,890 electric vehicles. This result fell just short of estimates, which were 463,300 (some companies report even more) cars delivered. While the difference is only a few hundred units, this news disappointed investors as expectations were high given previous optimistic forecasts and the recent rise in the stock price.

Unrealistic expectations and market reaction

Expectations were set high as Wall Street analysts had predicted deliveries of around 461,000 to 470,000 cars. Thus, Tesla's result at least surpassed the previous quarter when the company delivered 444,000 cars.

Cybertruck as a potential gamechanger

An interesting factor that may influence Tesla's future development is the growing sales of the Cybertruck. In July, Tesla sold over 5,000 units of this revolutionary car, with total sales for 2024 reaching nearly 18,000 units. Analysts estimate that as many as 13,500 Cybertrucks could have been sold in the third quarter. While this model only accounts for about 3% of total sales, its growing popularity could play a significant role in Tesla's future growth.

Important margin expectations and challenges

Beyond deliveries, the focus is on margin development. Analysts led by Wedbush's Dan Ives believe that Tesla's margins could start to improve after a year of decline. Tesla has cut the prices of its cars several times over the past year, which has had a negative impact on profitability, but those price cuts are now largely behind the company, which could bring a rebound in profits.

Tesla

TSLA

$250.08 $9.42 +3.91%

Capital Structure

Market Cap

798.9B

Enterpr. Val.

796.6B

Valuation

P/E

70.3

P/S

8.4

Open $246.70

Day range $244.58 - $250.96

52 week range $138.80 - $271.00

Tesla stock saw a 32% rise in the third quarter of 2024, breaking out of a long-term downtrend line. However, there was a correction after the results were released as the failure to meet expectations disappointed investors. As a result, the stock lost over 3% in premarket trading.

Outlook for the future

Although the third quarter did not deliver the expected performance, upcoming events such as the "Robotaxi Day" scheduled for October 10 and improvement in margins could offer Tesla new opportunities for growth. Thus, the entire market will be closely watching not only the results from this event, but also the future sales development in China, which is a key market for the company's future growth.

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Source.