Tesla reports strong Q3 deliveries but Cybertruck setbacks continue

Tesla has reported strong production and delivery figures for the third quarter of 2024. After producing nearly 410,000 vehicles in the second quarter, the electric car giant boosted output to 469,796 units in Q3 and delivered 462,890 cars to customers.

These numbers represent a 14.3% increase in production and a 4.3% rise in deliveries compared to the previous quarter, marking a recovery from the dip witnessed earlier in the year.

This boost also allowed Tesla to exceed its output from last year, when 430,488 vehicles were built, and 435,059 were delivered. The positive trend at the world’s number one EV maker opposes the general sentiment that electric car sales have fallen into a doom spiral.

Marginal increase for higher-end models

However, despite this progress, Tesla fell slightly short of Wall Street’s expectations, which had forecast a delivery increase of about 8%. Analysts had anticipated that extended incentives and favorable financing plans in key markets like China would drive more significant growth. While the 4.3% increase is notable, it did not fully meet the anticipated delivery volume.

The bulk of Tesla’s growth in Q3 came from its best-selling models, the Model 3 and Model Y, which together accounted for 443,668 production units and 439,975 deliveries. As expected, these vehicles continue to dominate Tesla’s sales figures.

Meanwhile, production of Tesla’s other models, which include the Model S, Model X, the upcoming Cybertruck, and the Semi truck, remained relatively stable at 26,128 units, with 22,915 delivered. This category saw only a marginal increase in production and deliveries compared to Q2, indicating slower momentum for Tesla’s higher-end and newer models.

Although Tesla’s Q3 production and delivery figures represent a return to year-over-year growth, the company still faces challenges in meeting its ambitious goal of 2 million deliveries for 2024. With its current trajectory, Tesla may need to accelerate production in the final quarter to stay on track.

Return to Paris

A further reason for Wall Street’s lukewarm reaction is the company’s recently announced recall of over 27,000 Cybertrucks due to vehicle rearview camera issues. The cameras display video feeds with a delay, posing potential safety risks.

Tesla plans to address this problem with a software update. Also, unexpected internal leadership changes have occurred, with reports that Nagesh Saldi, a key figure responsible for Tesla’s IT and security strategies, is stepping down.

This news comes just ahead of Tesla’s highly anticipated robotaxi unveiling event scheduled for October 10th in Los Angeles. Tesla will also return to the Paris Auto Show from 14-20 October, marking its first appearance there in six years. Tesla is expected to showcase its complete lineup, including the controversial Cybertruck, which is yet to be sold in Europe.

While Tesla’s automotive segment posted strong results, its energy storage business experienced a decline. The company deployed 6.9 GWh of energy storage products in Q3, down from 9.4 GWh in the previous quarter.

Tesla has acknowledged that this sector fluctuates more widely from quarter to quarter than its vehicle division. Further details on the automotive and energy segments are expected to be disclosed in the company’s Q3 financial report on October 23rd.