Tesla's Q3 vehicle deliveries drop as factory upgrades slow production

Delivered 435,059 EVs in the July-September period missing analysts’ estimates of 461,640

Visitors stand outside barriers surrounding Tesla's new Model 3 saloon displayed at the China International Fair for Trade in Services in Beijing last month. Reuters

Tesla, the world’s biggest electric vehicle manufacturer, said its vehicle deliveries dropped 6.7 per cent on a quarterly basis in the third quarter as the company’s production was affected due to “planned downtime” at its factories.

The Texas-headquartered company delivered 435,059 vehicles in the July-September period, missing analysts’ estimates of 461,640 vehicles.

Meanwhile the production of the vehicles dipped 10.3 per cent quarterly to 430,488 units in three months to September 30.

“A sequential decline in volumes was caused by planned downtimes for factory upgrades, as discussed on the most recent earnings call,” the Nasdaq-listed company said.

Following the announcement, shares of the company surged 0.71 per cent to $251.99 on Monday, giving it a market value of $789.33 billion.

The company's shares are up about 133.11 per cent since the start of the year.

Tesla said it delivered 435,059 vehicles globally in the third quarter, of which approximately 419,000 were Model Y and Model 3 vehicles and around 16,000 were higher-priced Model X and Model S cars.

In July, Tesla said it was planning to grow production “as quickly as possible” in alignment with the 50 per cent compound annual growth rate. For 2023, Tesla aims to produce about 1.8 million cars.

Tesla, which went public in 2010, reported a 20 per cent annual jump in second-quarter net profit to more than $2.7 billion. It was Tesla's 16th straight profitable quarter and seventh consecutive three-month period with more than $2 billion in profit.

The company is expected to announce third quarter earnings on October 18.

Tesla produces its vehicles in Fremont, California; Austin, Texas; Shanghai, China; and Berlin, Germany. The company said it remained on track to begin production of its cyber trucks later this year at its gigafactory in Texas.

Tesla’s billionaire chief executive Elon Musk said the company is also looking to invest in India - one of the biggest consumer markets - after meeting Indian Prime Minister Narendra Modi in June.

Mr Musk said he expects the company to have a presence in India “as soon as humanly possible”, adding that he intends to visit the country next year.

Tesla is also partnering with a number of car manufacturers, including Rivian Automotive, Polestar, General Motors and Ford, to allow drivers to use its charging networks across North America.

The agreements will provide EV users access to Tesla's network of 12,000 Superchargers across the US and Canada.