Elon Musk’s Tesla revealed its third-quarter delivery numbers this week, disappointing analysts and failing to meet CEO Elon Musk’s goals.
Fortune reports that it delivered 97,000 vehicles in its third-quarter which ended on September 30. The firm fell short of the 100,000 vehicle deliveries that Tesla CEO Elon Musk mentioned in an email to employees in September. If Tesla had hit 100,000 vehicles delivered it would have been the first time the firm had reached that threshold in a single quarter which Musk stated would be “an incredibly exciting milestone for our company.”
The third-quarter numbers exceeded Tesla’s delivery figures of 95,200 in the second quarter and is above last year’s third-quarter figures of 83,500. Although the third-quarter figures show growth for Tesla, the company is now on pace to fall well short of Musk’s full-year production goals. Many feel that they show that once again CEO Elon Musk has overpromised and undelivered.
Gene Munster, a managing partner at venture capital firm Loup Ventures, commented to Bloomberg: “When Elon Musk says they are aiming for 100,000 deliveries, you are hoping for 102,000. Not 97,000. This is a credibility hit. This is a textbook example of Elon not being disciplined and having difficulty managing expectations.”
Dan Ives, an analyst at Wedbush who advises a hold status on Tesla stock, stated: “If you look at the mix of S and X deliveries to Model 3s, profitability is likely to be a challenge.” Kevin Tynan, a senior autos analyst at Bloomberg stated: “Tesla’s missed 3Q delivery target and 2% sequential volume gain may be a sign that pushing into untapped markets isn’t the demand bonanza the company expected. China will be key to boosting deliveries by the 8% needed in 4Q — to a record 105,000 — to reach the bottom of Tesla’s guidance.”