Tesla Misses Third Quarter Deliveries: Impact on EV Stocks

Tesla (TSLA) It reported third-quarter delivery results on Oct. 2, which fell short of some analysts’ expectations, sending the stock down more than 6%. EV maker 462,890 units delivered From July to September, there was a 6.4% increase compared to the previous year. Although this figure was slightly above average, Vehicle estimate: 462,000This did not significantly meet the high expectations of Barclays and UBS, which had predicted 470,000.

Tesla’s third quarter numbers were ahead of the 435,059 vehicles delivered during the same period last year and slightly higher than the second quarter’s total of 443,956 deliveries. Of the 462,890 deliveries, 439,975 were for Tesla’s popular Model 3 and Model Y vehicles, while the remaining 22,915 included the Model S, Model X and Cybertruck.

Even though Tesla’s third-quarter deliveries improved year-over-year and were better than the second quarter’s 443,956 units, some investors still expressed concern. Tesla stock price is falling About 4% Immediately after the market opened on the day the shipping data was released.

Moreover, it raises concerns about Tesla’s ability to sustain rapid growth amid increasing competition, especially in the EV space. Tesla needs to deliver a record 516,344 units in the fourth quarter to avoid its first-ever annual delivery decline.

Speaking of competition, Tesla is not alone in the race for EV supremacy. Rivals are: Liotto (LI)XPeng Inc. (XPEV), Nio Co., Ltd. (Nio)and BYD Companies Limited (BYD) Also see record delivery In September.

For example, LI hit a record 53,709 deliveries, up 48.9% year-over-year, while XPEV’s EV numbers surged more than 52% from August and 39.5% year-over-year. BYD, Tesla’s biggest competitor in the global EV market, launched 443,426 battery electric vehicles in the third quarter, putting it right behind Tesla in quarterly figures. Meanwhile, NIO reported a 7.8% quarter-on-quarter increase with 61,855 EV deliveries.

What’s next for Tesla?

Tesla has a busy October ahead of it. The company’s third-quarter earnings report is scheduled to be released on October 23, and investors will be especially eager to see how Tesla’s profit margins hold up. Meanwhile, at the robotaxi event held on October 10th, updates on fully autonomous driving technology, AI, and autonomous driving developments will be shared, drawing great attention. Analysts at Wedbush and Deutsche Bank have flagged the event as a potential catalyst for Tesla stock, which has already surged 20% in the past month. We maintain a Buy rating on both companies. Target prices are $300 and $295Each.

Despite the Q3 delivery shortfall, TSLA continues to innovate and expand its presence in the EV and autonomous driving markets. A strong presence in China, along with continued improvements in AI, can provide the momentum needed to achieve future goals. Therefore, adding this stock to your portfolio could be profitable.

However, investors concerned about Tesla’s near-term prospects may want to keep an eye on these potentially powerful companies: Rivian Automotive (RIVN) and Lucid Group (LCID) As an alternative. Let’s take a closer look at their basics.

Stocks held:

Rivian Automotive (RIVN)

Rivian has had a tough year in 2024. This is especially true as an EV manufacturer still striving for profitability in a challenging market. Despite the stock’s recovery from its April lows, it remains down nearly 55% year to date. But there is optimism, as the company has surpassed Wall Street’s revenue and earnings expectations. 2nd quarterReflects progress in reducing costs.

On August 6, RIVN reported a loss of $1.46 per share, exceeding analysts’ expectations, who had expected a loss of $1.19 per share. Revenue for the quarter was $1.16 billion (up 3.3% year-over-year), slightly surpassing analyst expectations of $1.15 billion. The company also earned $17 million in regulatory credits.

Despite posting a net loss of $1.46 billion in the quarter, RIVN’s cash position remains strong. The company ended the quarter with $7.87 billion in cash and investments, backed by $1 billion in unsecured convertible notes from Volkswagen. Additionally, the company completed conversion upgrades at its Normal, Illinois plant, producing 9,612 vehicles. 13,790 units delivered.

In 2024, Rivian has set a production target of 57,000 vehicles, including any downtime required for additional upgrades and cost savings. Efforts to improve efficiency and reduce costs were reflected with the goal of increasing production line speed by 30% and reducing material costs by 20% compared to the existing platform.

The company has also revamped its R1 pickup and SUV models with slightly competitive price increases. These updates are expected to increase sales and help Rivian achieve its goal of making each vehicle profitable by the end of the year. Overall, Rivian continues to face challenges, but its strategic initiatives and strong cash position provide a foundation for potential future growth.

Lucid Group (LCID)

Luxury electric vehicle manufacturer Lucid recently garnered attention by exceeding expectations in the second quarter and setting a new delivery record. Over the past three months, LCID stock has risen more than 20%. company 2,394 units delivered Performance for the quarter ended June 30 was up 70.5% compared to the same quarter last year and up 22% compared to the first quarter. The results followed a record 1,967 deliveries in the first quarter and surpassed analysts’ forecasts of 1,889 units.

Meanwhile, the company is also increasing production, producing 2,110 EVs after a 27% year-over-year decline in first-quarter production. Although production is below previous highs, this improvement signals a positive recovery for the company. Lucid aims to produce 3,837 vehicles by the first half of 2024 and achieve this year’s target of 9,000 vehicles, and to achieve this, 5,163 more vehicles are needed in the second half of the year.

As Lucid’s production and deliveries rebound, the company 2nd quarter sales This is $205.8 million, exceeding Wall Street expectations of $192.65 million. However, the company suffered an adjusted loss of $0.29 per share, slightly higher than the 26 cents expected. Nonetheless, the EV maker ended the quarter with $4.28 billion in liquidity and even secured a $1.5 billion commitment from Ayar Third Investment Co, a partner in Saudi Arabia’s Public Investment Fund. The funding provides Lucid with a financial cushion until at least the fourth quarter of 2025.

Commenting on this, CEO Peter Rawlinson said he was “very encouraged” by the momentum Lucid was gaining, especially with the expected launch of its first electric SUV, the Gravity, later this year. This new model is expected to help the company maintain a positive trajectory as it moves into the second half of 2024. With this in mind, investors may want to consider adding this stock to their watchlist.