Tesla stock rolls after electric car manufacturer lost sales

Telsa Inc. shares were dropped on Thursday, after weaker-than-expected third-quarter deliveries led to at least one downgrade and plenty of analyst comments.

Tesla

TSLA, -4.15%

shares fell more than 6% and traded as low as $ 224.28, but gained some ground at the end of the season, dropping 4%.

The Silicon Valley automaker reported late Wednesday third-quarter deliveries, its sales authorization, which fell below the mark according to FactSet, which gathered estimates from 34 Wall Street analysts.

Tesla said it had delivered around 97,000 vehicles in the third quarter, including 79,600 Model 3 sedans. Analysts surveyed by FactSet expected the company to sell around 99,000 vehicles, including 80,200 Model 3s, Tesla's mass-market vehicles.

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Tesla delivered 84,000 vehicles in the third quarter of 201[ads1]8, including approximately 56,000 Model 3s.

Orders from the third quarter were on record, and the company has entered the current quarter with an increase in order backlog. Almost all Model 3 orders came from people who had no reservations, "which strengthens the transition to generate strong organic demand," Tesla said.

Analysts at JMP Group reduced their Tesla stock rating to the equivalent of purchases, noting that Tesla not only missed quarterly sales expectations, but the data showed low single-digit sequential unit growth, “and we know of no operating issues like could have prevented (Tesla) from supplying more cars if demand was available. "

" To put it another way, yesterday's announcement was the first time since covering the stock that we found ourselves wondering if growth in demand for (Tesla's) cars could be leveling off, "said The analysts, led by Joseph Osha.

Cowen analysts, who retained their response to a sell rating on the stock, went on to say that Tesla's growth story from year to year "Probably ended.

" We don't see that a lot to get excited about in the short term, and believe bulls must be big believers in the China Model X model and autonomous narrative to justify appreciation, "said the analysts, led by Jeffery Osborne.

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Tesla has set a target of delivering 360,000 to 400,000 cars this year, which means that more than 100,000 cars had to be delivered in the fourth quarter and even get close to this analysts charted FactSet expects 357,000 units for the year.

Wedbush analyst Dan Ives took a slightly more positive view of Wednesday's delivery shortage, saying it was a "step in the right direction" for the company and delivered more cars than last quarter when Tesla delivered 95,000 units, "which was an impressive feat . ”

Analysts at Evercore ISI also held their assessment of Tesla for their similar sales, saying they were concerned about the mix of luxury vehicles Model S and Model X. Tesla said it sold a combined 17,000 Model S sedans and Model X SUVs, while Evercore analysts, led by Arndt Ellinghorst, expected 19,000 vehicles.

More worrying, however, is the profitability and cash flow as the company reports third-quarter results by the end of the month or early November, they said

Third Quarter Revenue "is the likely wave block for the next quarters that growth platelets for (compact SUV Model Y) production will begin in earnest," they said.

Developments that progress beyond expected Chinese factory or a fixed date for the Model Y debut could take the stock above $ 250.

Credit Suisse analysts pointed out in a note last week that Tesla will report its first dip in revenue year-over-year since 2012, with FactSet expecting $ 6.36 billion in revenue in the third quarter compared to $ 6.82 billion year-over-year.

Tesla shares lost 31% this year, in contrast to gains of 15% for the S&P 500 index

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and 12% for Dow Jones industrial average.

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