Oct 3 (Reuters) - Tesla Inc shares closed down
8.6% in their steepest single-day decline in four months on
Monday after third-quarter vehicle deliveries fell short of Wall
Street estimates due to logistic hurdles, with slowing outlook
for economic growth raising doubts about demand.
The tumble wiped out more than $71 billion in market value
of the world's most valuable automaker and dragged down shares
of other electric-vehicle makers.
Despite record quarterly deliveries, Tesla missed market
expectations, with an unusually large gap between production and
deliveries as it struggled to secure enough transportation
during the peak time at a reasonable cost.
The shortfall in deliveries comes amid demand worries among
investors and analysts due to increased prices of Tesla
vehicles, higher borrowing cost and a dull outlook for global
"While Tesla continues to point to supply constraints as
limiting deliveries, the potential for demand destruction looms
large," JP Morgan analyst Ryan Brinkman said.
Analysts warned that demand may lose steam in the coming
quarters, with Toyota Motor Corp's U.S. sales dropping
7.1%. "As far as shipping goes, we are not facing any issues,"
the Japanese automaker said.
Tesla will need to deliver more than 450,000 vehicles in the
fourth quarter to meet its goal of growing deliveries by 50%
annually. Reuters reported that it has set a target to produce
about 495,000 Model Y and Model 3 in the period.
"The broader concern is more so than just them missing their
deliveries, probably just more the going concern for all these
smaller upstart EV... That might put us behind the curve in
terms of where EV production goes," said GuideStone Capital
Management's Brandon Pizzurro.
Still, analysts expect Tesla's manufacturing margins to
remain robust in the fourth quarter, thanks to its pricing power
and ability to use China as an export hub for many countries.
Meanwhile, rival Rivian Automotive Inc said on
Monday it produced 7,363 vehicles in the third quarter, 67%
higher than the preceding quarter, and maintained its full-year
target of 25,000.
(Reporting by Akash Sriram, Ankika Biswas and Savyata Mishra in
Bengaluru; Additional reporting by Nathan Gomes amd Yuvraj
Malik; Editing by Arun Koyyur and Sriraj Kalluvila)