XPEV - Tesla Persists With Price Cuts After Underwhelming Q3 Sales Rivian's $1.5B Debt Offering Sinks Stock Lucid's Gamble With Cheaper Trim And More: Biggest EV Stories Of The Week | Benzinga
Electric vehicle stocks closed the week that ended on Oct. 6 on a down note, although market leader Tesla, Inc. (NASDAQ:TSLA) managed to post a weekly advance despite reporting underwhelming third-quarter deliveries. The sector-wide weakness came amid the broader market volatility and some company-specific news.
Here are the key events that happened in the EV space during the week:
Tesla Q3 Sales Undershoot Lowered Bar: Tesla reported Monday third-quarter deliveries of 430,488 vehicles in the third quarter, down from 479,700 units it sold in the second quarter. The number also trailed the company-compiled consensus of 455,000 units. The Elon Musk-led company, however, affirmed its full-year deliveries goal of 1.8 million units.
The company blamed the shortfall on planned downtimes for factory upgrades. With volumes remaining insensitive to price cuts and several key catalysts lined up for the final leg of the year, analysts were bracing for no further price cuts from the company. Tesla belied expectations and announced price cuts for its Model Y and Model 3 EVs in the U.S., with the percentage of reductions ranging from 2.65% to 4.23%. Following the move, Future Fund’s Gary Black said Wall Street analysts would likely lower their 2024 earnings per share estimate for Tesla by $0.30 to $0.50.
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