what happened
Shares of electric-car maker Tesla (Nasdaq: TSLA) On Friday morning, the market opened 5% lower in a few minutes. However, by 9:50 a.m. EDT, the stock was down only 3%.
The decline in growth stock follows Tesla’s report of vehicle delivery in its third quarter. But the stock may come down mainly for other reasons, namely the overall stock market slump on Friday.
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So what
Tesla announced it delivered 139,300 vehicles in Q7, beating analysts’ average forecasts of 137,000 deliveries. This was more than the company had given in the other quarter. Highlighting Tesla’s impressive growth, quarterly deliveries increased 43% over a year and 53% to 53%, respectively.
It is possible that Tesla’s quarterly vehicle deliveries exceeded analysts’ average estimates, putting some investors in big trouble. But the more precise weight loss in the stock on Friday was a decline in overall markets, with worse-than-expected job reports and news last night that President Donald Trump and First Lady tested positive for the coronavirus.
As of this writing, the Nasdaq is down 1.2% and S&P 500 Is below 0.8%.
Now what
Tesla expects better-than-expected third-quarter deliveries to target the company’s full year for 500-year deliveries, but that’s still not a guarantee. To meet this target, the company will have to deliver more than 181,000 vehicles in the fourth quarter.
Tesla is expanding production and delivery of both Model D3 and Model Y globally. The new addition of the Model Y to Tesla’s vehicle lineup in March will play a key role in any gradual growth in the Q4. The automaker is probably still increasing production and delivery of the new vehicle.
