Economy

Tesla shares fall as it misses delivery estimates

Tesla shares fall as it misses delivery estimates”

Tesla produced 96,155 vehicles and delivered slightly more-97,000.

Tesla did not release individual sales for the Model X, but reported it delivered a total of 17,400 Model S sedans and Model X SUVs.

In a statement released after Wednesday's NY close, Tesla said it delivered about 97,000 vehicles in the third quarter, including 79,600 Model 3 sedans, below the analyst consensus forecast for about 99,000 vehicles, including 80,200 Model 3s.

Insurance claims for such incidents will go through the vehicle owner's traditional auto coverage, said Jennifer Dukarski, a lawyer in Ann Arbor, Michigan, who represents automotive suppliers in disputes about safety and autonomous vehicle technology.

The company has had a number of challenges in its effort to reach that delivery milestone, including ensuring that its distribution network was properly equipped.

Following this investigation, which affected about 2000 vehicles, Tesla shares fell 0.7% on Friday, closing the day at $ 231.43.

Tesla's stock dropped 4% to $233 after the numbers came out.

Automated driving features are one way Tesla hopes to stay ahead of traditional automakers, which have been more conservative about enabling vehicles to operate without drivers. They are a barometer for how the company is performing ahead of announcing quarterly earnings.

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"But as the number of incidents build, you'll find someone who will entertain a class action dealing with a product defect", Dukarski said.

Tesla added the feature through a software update last week for some customers.

Tesla shares slid 7 percent in early Thursday trades after billionaire Elon Musk's electric-car maker said deliveries rose less than expected in the third quarter.

If Tesla met these numbers, it would be a 45% to 65% increase from 2018.

Tesla set an ambitious target to deliver 360,000 to 400,000 vehicles in 2019. "Wall Street analysts keep changing their Q3 delivery estimates until Tesla finally missed one of their unrealistic target [s]". There is very little middle ground when it comes to analysts' opinions of the company. And on Wednesday, JMP Securities analyst Joseph Osha turned a bit bearish on the company.

The company also faces external factors, such as slowing auto sales around the globe and competition from other electric vehicle makers. According to Osha, operational issues didn't prevent the company from delivering more vehicles. It tracks vehicles that have been sold and physically delivered to customers.

Ultimately, we'll know more once the company delivers its third-quarter earnings on October 24.



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