Tesla is set to release its third-quarter unit sales on Monday, but investors should expect some chaos. Wall Street estimates for Tesla’s unit sales have been all over the place, with analysts initially forecasting 473,000 units, but the number now at 461,000. The range of estimates is wider than normal, varying from 438,000 units to 511,000 units. Tesla’s third-quarter results are expected to either be slightly down, flat, or slightly up compared to the second quarter, primarily due to planned plant downtime for facility upgrades.
Investors are concerned about a potential low delivery number, which could raise questions about electric vehicle (EV) demand. They will also be watching production closely, as Tesla produced almost 14,000 more units than it delivered in the second quarter, and investors do not want to see inventory building up. Tesla stock typically reacts positively when delivery numbers beat expectations, as it leads to rising earnings estimates. However, Tesla’s stock has recently experienced a drop of about 14% since earnings were reported, partially due to market conditions.
While a quarterly delivery figure is just one of the factors that matter to Tesla investors, it can generate trading volatility. Therefore, Monday’s release of Tesla’s delivery numbers is expected to result in some trading volatility for the company’s stock.