- October 2, 2020
- Posted by: Stratford Team
- Category: Business
Tesla on Friday announced that it set a new quarterly record for vehicle deliveries — but the good news did nothing to help the stock, which fell 6 percent.
The electric automaker’s said it delivered 139,300 in the third-quarter, surpassing the 137,000 forecast by Wall Street, and beating its previous high-water mark of 119,000, which it set at the end of 2019.
The more affordable Model 3 and Model Y models led the way, with 124,100 making their way to customers, while the Model S and Model X cars moved 15,200 units.
The company produced just over 145,000 vehicles in the quarter, and said that inventory has declined as it continues “to improve our delivery efficiency.”
Despite the good news, Tesla shares were dropped more than 7 percent Friday amid signs of a worsening economy at a time when the President of the United States has tested positive Covid-19.
“We think some of this was priced in because there were whispers of an above-consensus total over the next several days,” CFRA Research analyst Garrett Nelson told The Post.
Nelson added that Tesla, which is expected to announce its third quarter earnings later this month, appears poised to maintain profitability and make its case for inclusion in the S&P 500 index.
“We don’t see another quarterly loss in sight, absent more Covid shutdowns or some kind of production disruption,” Nelson said. “We do think their addition to the S&P 500 is an eventuality. We can speculate the reasons why they were not added, but it could be that the committee wanted to see another quarter of results.
Also on Friday, CEO Elon Musk tweeted that Tesla will enter India by 2021.
“Next year for sure,” Musk tweeted in response to a post with a picture of a T-shirt reading “India wants Tesla.”
“Thanks for waiting,” he added.