Tesla reported lower-than-expected third-quarter deliveries due to planned factory upgrades for the rollout of a new version of its Model 3 sedan. Despite the dip in deliveries, some analysts believe that the upgrades could lead to a rebound in the fourth quarter and allow Tesla to better compete with rivals like Ford and BYD in China. The company is expected to start delivering the updated Model 3 and launch its Cybertruck later in the year. Tesla aims to deliver 1.8 million vehicles this year and will report quarterly results on October 18th.
During the third quarter, Tesla aggressively cut prices on its Model S and Model X cars in China and the US to counter the slowdown in the electric vehicle market and competition from other players. This strategy, along with the planned upgrades, may put pressure on its competitors and help Tesla maintain its dominance in the US EV market. However, there is an increasing demand for a wider range of EV options to satisfy growing consumer interest in electric vehicles.
While Tesla’s deliveries of premium vehicles Model S and Model X increased in the third quarter, they only accounted for around 4% of the total number of deliveries. In comparison, electric-pickup maker Rivian Automotive reported third-quarter deliveries above analysts’ estimates, highlighting the need for more diverse EV options in the market. Overall, Tesla’s lower delivery numbers in the third quarter may be offset by the anticipated launch of new models and aggressive pricing strategies in the coming months.