(Add Musk tweet)
Oct 2 - Tesla Inc on Sunday announced
lower-than-expected electric vehicle deliveries in the third
quarter, as logistical challenges overshadowed its record
The top electric car maker said "it is becoming increasingly
challenging to secure vehicle transportation capacity and at a
reasonable cost," but some analysts were also concerned about
demand for high-ticket items due to the weakening global
"The economy around the edges is still having a negative
impact for Tesla that's mostly logistical. But that I think
there is some demand sprinkled in there," Wedbush
Securities analyst Dan Ives told Reuters after the delivery
"There is a dark cloud over the auto sector. And Tesla is
Ford Motor said last month inflation-related costs
would be $1 billion more than expected in the third quarter and
that parts shortages had delayed deliveries.
Apple Inc. is backing off plans to increase
production of its new iPhones this year after an anticipated
surge in demand failed to materialize, Bloomberg reported last
month, citing people familiar with the matter.
"I think that EVs are in for probably a little bit of a
rough patch, just because people are probably going to be a
little bit hesitant and less urgent to buy something new," OANDA
senior market analyst Ed Moya said.
'CRAZY WAVE OF DELIVERIES'
Tesla delivered 343,830 electric vehicles, a record for the
world's most valuable automaker, but less than the 359,162
analysts on average had expected, according to Refinitiv. A year
earlier Tesla delivered 241,300 units.
The latest deliveries fell short of Tesla's production of
365,923 vehicles, which is rare for the automaker which has seen
its deliveries higher or similar to production in many of recent
"As our production volumes continue to grow, it is becoming
increasingly challenging to secure vehicle transportation
capacity and at a reasonable cost during these peak logistics
weeks," Tesla said in a statement on Sunday.
Tesla CEO Elon Musk said on Sunday "Smoothing out crazy end
of quarter delivery wave to reduce expedite costs & relieve
stress on Tesla team."
Last year, he said Tesla is having a "crazy wave" of
deliveries at the end of each quarter, because its Shanghai
factory makes cars for exports to Europe and other countries in
the first half of a quarter and then cars to be sold in China.
Tesla again asked employees to help deliver "a very high
volume of vehicles to eagerly waiting customers during the final
days of Q3" in California, according to an email seen by
Tesla on Sunday said it has "began transitioning to a more
even regional mix of vehicle builds each week, which led to an
increase in cars in transit at the end of the quarter."
Q4 DELIVERY PUSH
Tesla set an ambitious target to produce almost 495,000
Model Y and Model 3s in the fourth quarter of this year,
internal plans reviewed by Reuters show.
The company's production ambitions come against the backdrop
of increasingly gloomy outlook for global growth, with Musk
himself telling top managers in June he had a "super bad
feeling" about the economy and planned to cut staff.
During a conference call in July, Musk said at first that
macroeconomic uncertainty might have some impact on demand for
its electric vehicles, but when pressed for details by an
analyst, he said the company did not have a demand problem but a
The automaker expanded production capacity in Shanghai after
a resurgence in COVID-19 cases forced a suspension at the plant
and fueled the first dip in deliveries after a nearly
two-year-long record run.
In September, Tesla's vehicle order backlog fell, especially
in China, Troy Teslike, a Tesla data tracker tweeted.
Tesla said it delivered 325,158 Model 3 compact cars and
Model Y sport-utility vehicle, as well as 18,672 of its Model S
and Model X premium vehicles to customers during the quarter.
Meanwhile, Musk on Friday showed off a prototype of its
humanoid robot 'Optimus,' predicting the electric vehicle maker
would be able to produce millions and sell them for under
$20,000 - less than a third of the price of a Model Y.
Experts were impressed by the speed of development of
Tesla's humanoid robots, but they agreed with Musk, who said
"there's still a lot of work to be done to refine Optimus and
(Reporting by Hyunjoo Jin in San Francisco, Savyata Mishra and
Mrinmay Dey in Bengaluru, Victoria Waldersee in Berlin; Editing
by Sriraj Kalluvila, Lisa Shumaker and Sandra Maler)