Tesla's third-quarter to disappoint but strong end of 2022 coming

(Alliance News) - Tesla Inc's third quarter deliveries were solid, but "nothing to write home about", an investment analysts said.

Between July and September, Tesla delivered a total of 343,380 vehicles around the world, the company led by Elon Musk said in a statement.

That represents an increase of 43% over the same period last year, and 35% more than the second quarter of 2022.

"Clearly Tesla had some delivery challenges in the quarter with some isolated soft spots in China," analysts at Wedbush commented.

Tesla said it faced capacity issues, though it hopes to see fixes to these worries as it steps up distribution efforts in factories in Berlin and Austin, Texas.

"While the reasoning (in the PR) from Tesla makes sense on paper, the Street will not be convinced and lingering worries about demand issues will persist until we hear around year-end unit guidance on Tesla's conference call October 19," Wedbush added.

"In a nutshell, this quarter was nothing to write home about and the Street will be disappointed by the softer delivery number in 3Q."

Looking to the fourth quarter, Wedbush said deliveries could hit the "massive" 475,000 range.

"That said, we view [the third-quarter] more of a logistical speed bump rather than the start of a softer delivery trajectory into 4Q/2023 and remain bullish on the Tesla story."

Wedbush rates Tesla at 'outperform' with a USD360.00 price target.

By Eric Cunha; [email protected]

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