Tesla Faces Pressure as Delivery Report Looms

Investors react negatively as Tesla prepares for its quarterly vehicle delivery report amidst growing competition in the EV market. The latest report highlights concerns over Tesla's sales potential against new records set by competitors.

Date: 03-10-2024

AI Rating: 4

Tesla's upcoming quarterly vehicle delivery report is creating a stir among investors, leading to a 2% drop in its stock as of 2 p.m. ET. As competitors, particularly General Motors, report significant growth in EV sales and capture market share, negative sentiment surrounding Tesla's performance is rising.

The report highlights that General Motors (GM) experienced a remarkable 60% increase in its U.S. electric vehicle (EV) sales during the third quarter, now holding a 9.5% share of the U.S. EV market. This increasing competition, particularly from manufacturers like Nio, XPeng, and Li Auto in China, who collectively reported over 96,000 EV deliveries in September (a 44% year-over-year increase), raises concerns over Tesla's future sales prospects.

Interestingly, while some investors are selling Tesla stock amid fears of competition, there could be a potential upside. Analysts expect Tesla to announce about 463,000 deliveries, signifying a 6.5% year-over-year increase. If Tesla surpasses these expectations, it could indicate a growing overall EV market, potentially serving as a bullish sign for the company.

Thus, Tesla's prospects hinge significantly on its delivery report and the competitive landscape it finds itself in. Investors reacted to the prevailing fears, reflected in the stock's fall, showcasing the current sentiment around the company's growth potential against a backdrop of rigorous competition.

Stocks: TSLA GM NIO XPEV LI