10/2/2023: Tesla Q3 Deliveries Missed Expectations
Tesla reported Q3 deliveries numbers this morning. Total deliveries were 435K vs. 456K expected. Elon has warned about the Q3 delivery number due to factory upgrades but the final number still missed the already lowered expectations. Tesla’s financing APR has gone from 2.99% in H1 last year to 6.5% today. Tesla is able to lower the car prices to stabilize the demand but the interest rate simply went up too fast. The higher interest rates would continue to pressure car sales in the foreseeable future. But I believe Tesla is in the position to weather the high rate environment much better than other car manufacturers, who are not as proficient in making low-cost EVs.