Tesla (NASDAQ: TSLA) delivery estimates were adjusted for the third quarter by Wedbush analyst Dan Ives, who moved the units into his fourth-quarter forecast.
Tesla is expected to release delivery and production figures for 2023’s third quarter sometime early next week, and as the automaker continues to prepare for the launch of the Cybertruck in the United States, Q3 will host the four vehicles of the company’s lineup.
With the Model Y and Model 3 making up a vast majority of vehicle deliveries at well over 90 percent, the Model S and Model X will contribute just a few thousand units to Tesla’s overall delivery and production figures for the quarter.
However, the makeup of Tesla’s delivery number is not what analysts are paying attention to as Q3 comes to a close. Instead, they are looking at the adjustments that needed to be made to its forecast for the quarter, as Tesla indicated earlier this year that factory upgrades would be occurring at its production facilities.
During the Q2 Earnings Call, CEO Elon Musk said:
“We continue to target 1.8 million vehicle deliveries this year, although we expect that Q3 production will be a little bit down because we’ve got some shutdowns to for — a lot of factory upgrades. So, just probably a slight decrease in production in Q3 for sort of global factory upgrades.”
These upgrades required stoppages in production at the factories, and Musk prepared investors and analysts for the possibility that things could be somewhat slow in terms of sequential growth.
Dan Ives of Wedbush is one of the analysts preparing his forecast and estimates for the Q3 delivery figures for the potential drop in production numbers.
Ives dropped his estimate from between 460,000 and 465,000 units to 440,000.
“…longer than expected downtimes of the factories in Shanghai/Austin caused likely ~20k units to shift into 4Q,” Ives wrote.
Ives and Wedbush hold an “Outperform” rating on Tesla stock and their price target remains at $350.
Disclosure: I am a Tesla shareholder.
I’d love to hear from you! If you have any comments, concerns, or questions, please email me at firstname.lastname@example.org. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at email@example.com.