Tesla Shares Fall Despite Record Deliveries as Post-Subsidy Demand Concerns Mount
Tesla Shares Fall Despite Record Deliveries as Post-Subsidy Demand Concerns Mount
Tesla Inc. (NASDAQ: TSLA) closed down 5.11% at $436.00, a notable decline that occurred despite the electric vehicle manufacturer reporting record third-quarter deliveries. The company announced approximately 497,099 vehicles delivered, exceeding analyst forecasts.
However, the market’s reaction suggests investor apprehension regarding future demand. The impressive Q3 delivery figures were largely driven by a rush from customers to claim the $7,500 U.S. EV tax credit before its expiration at the end of September. With lease prices now adjusted higher across models in the absence of this significant incentive, investors are closely watching whether Tesla can sustain its sales momentum without the subsidy.
Attention will now shift to Tesla’s impending fourth-quarter delivery guidance and margin trends, which will be crucial in demonstrating the underlying strength of demand. While Tesla faced a downturn, the broader market showed resilience, with the S&P 500 (SNPINDEX: ^GSPC) adding 0.062% to 6,715.35 and the Nasdaq Composite (NASDAQINDEX: ^IXIC) gaining 0.39% to 22,844.05, supported by tech and growth stocks“>other tech and growth stocks. In the EV sector, Rivian Automotive Inc. (NASDAQ: RIVN) also fell 7.39% to $13.53, while NIO Inc. – ADR (NYSE: NIO) saw a rise of 3.20% to $7.89.
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