Tesla's October Deliveries Decline as Investors Watch Closely

Tesla (NASDAQ:TSLA) reported a decline in deliveries in October across four major markets. An industry review by Wells Fargo analyst Colin Langan indicates that deliveries fell by approximately 23% compared to last year.

October deliveries in North America fell short of the strong demand seen in September, coming in at around 45,000 vehicles, down from the previous month's 60,000. This weakness is attributed to buyers pulling forward their purchases ahead of the expiration of the $7,500 U.S. tax credit. Langan noted that this weakness is widespread and poses downward risks for fourth-quarter delivery estimates.

Wall Street anticipates fourth-quarter deliveries to be around 440,000 vehicles, which is below Tesla's nearly 500,000 deliveries in the third quarter. This situation increases the likelihood of missing delivery targets, potentially negatively impacting near-term expectations.

Despite softer sales, investors have increased their holdings in Tesla shares over the past year. This is attributed to growing interest in artificial intelligence initiatives such as robotaxis and humanoid robots, as well as CEO Elon Musk's new incentive package, which gained shareholder support earlier in November. Analysts are divided on this point; Langan maintains an underweight rating, citing ongoing demand risks and setting a price target of $120.

Market analysts indicate that Tesla’s short-term stock performance may depend more on progress towards its artificial intelligence and robotics goals rather than on vehicle volumes.