Tesla's October Deliveries Decline as Investors Watch Closely

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

October deliveries in North America lagged behind the strong demand seen in September, falling to around 45,000 vehicles, which was below 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 downside risks for fourth-quarter delivery forecasts.

Wall Street predicts fourth-quarter deliveries to be around 440,000 vehicles; this figure is below Tesla’s nearly 500,000 deliveries in the third quarter. This situation raises 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 rising interest in AI ventures such as robotaxis and humanoid robots, along with CEO Elon Musk's new incentive award received with shareholder support in early November. Analysts are divided at this point; Langan continues to hold an underweight rating, citing ongoing demand risks, with a price target of $120.

Market analysts suggest that Tesla’s short-term stock performance may depend more on progress towards AI and robotics goals than on vehicle volume.