Tesla’s quarterly results due out on Wednesday will likely show whether the Elon Musk-led electric vehicle maker is facing some weakness in demand that is starting to weigh on the wider auto industry.
While Musk said Tesla “doesn’t have a demand problem,” the latest delivery report showed the company produced 22,000 more electric vehicles than it delivered to customers in the third quarter. He linked the increase in inventory to problems related to transport.
Demand for Tesla vehicles in China, the world’s biggest auto market, is emerging as a major concern among Wall Street analysts as the electric vehicle maker faces stiff competition from Chinese rivals BYD, Nio and XPeng.
“The main concern right now is demand in China as wait times appear to be decreasing,” said RBC Capital Markets. “The question is whether this is an episode or a sign of a greater shift among consumers.”
Analysts say price is a key factor that could help Tesla offset a possible drop in demand and boost revenue.
The average sales price of Tesla’s Model 3 in the United States has increased about 24% since January last year, potentially helping the electric vehicle maker achieve record third-quarter revenue.
Analysts expect Tesla’s third-quarter revenue to rise about 60% to $21.96 billion and earn $1 a share when it releases results Oct. 19 — Refinitiv Data.
Source: CNN Brasil
Joe Jameson, a technology journalist with over 2 years of experience, writes for top online news websites. Specializing in the field of technology, Joe provides insights into the latest advancements in the industry. Currently, he contributes to covering the world stock market.
