Tesla (TSLA) reported third-quarter vehicle deliveries of 462,890, which fell short of expectations of 463,310 vehicles. The lower-than-expected Q3 vehicle deliveries led to TSLA shares falling by 4.3% in trading at the time of writing on Wednesday.
Tesla’s Price Cuts Don’t Seem to Be Working
The challenges Tesla faced during the third quarter stemmed from multiple factors, including rising competition in the U.S., a reduction in subsidies in Europe, and weaker consumer spending in China.
Although Tesla has implemented price cuts and offered incentives to entice buyers, these measures have also put significant pressure on the company’s profit margins. Despite these efforts, the company’s Q3 vehicle deliveries represented a modest increase of 6.4% compared to the previous quarter. The disappointing vehicle delivery numbers indicate that incentives and low-cost financing were not enough to boost demand for its aging models in an increasingly competitive market.
Despite Tesla reiterating its FY24 vehicle deliveries of 1.81 million units, the EV major will need to deliver an additional 516,344 vehicles in the fourth quarter to meet this target.
What Is the 12-month Price Target for Tesla?
Analysts remain sidelined about TSLA stock, with a Hold consensus rating based on 12 Buys, 16 Holds, and seven Sells. Over the past year, TSLA has inched up by 2.6%, and the average TSLA price target of $210.91 implies a downside potential of 18.3% from current levels.
