.September 19, 2024
3:28 AM

Tesla (NASDAQ:TSLA) is expected to deliver approximately 460,000 vehicles in Q3, a 6% increase from last year and a 4% growth from Q2, aligning with market expectations and the consensus estimate of 461,000 deliveries. Record-breaking deliveries in China are anticipated to offset flat performance in North America, but concerns about profitability remain.

In Q2, Tesla’s auto gross margins dropped to 14.6% due to price cuts on the Model Y. For Q3, additional incentives, especially in the U.S., could lead to a pricing headwind of $4,500 per vehicle, potentially reducing global revenue per unit by $550.

Despite pricing pressures, Tesla’s ongoing cost reductions are expected to help mitigate the impact, with gross margins possibly improving to 15.2% in Q3. The upcoming Robotaxi event on October 10 and the launch of a lower-cost model in early 2025 are seen as potential catalysts for the stock.