TESLA JUST RELEASED Q3 DELIVERY REPORT

EV Channels Review

Tesla's Q3 2023 delivery and production report reveals production slightly ahead of deliveries, with both figures falling short of analyst expectations. The company attributes the sequential decline in volumes to planned factory upgrades, specifically mentioning downtime for the "Highland" transition in Shanghai and at Texas. Despite the miss, Tesla reiterated its 2023 volume target of around 1.8 million vehicles, though the language used was noted as potentially softer. The report also highlighted a significant sequential decline in Model S and Model X production, coinciding with substantial price cuts for these models, raising concerns about their business segment. Inventory levels remain low at approximately 16 days, but the lack of a larger drawdown suggests potential demand constraints or allocation issues, rather than solely production limitations. The upcoming Q3 earnings call on October 18th is anticipated to provide further clarity.