Tesla's October Deliveries Decline as Investors Watch Closely

Tesla (NASDAQ:TSLA) reported a decline in deliveries in four major markets in October. An industry review by Wells Fargo analyst Colin Langan indicated that deliveries have decreased by approximately 23% compared to the previous year.

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

Wall Street is projecting fourth-quarter deliveries to be around 440,000 vehicles, which is lower than Tesla's nearly 500,000 deliveries in the third quarter. This situation raises the likelihood of missing delivery targets and could negatively impact 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 initiatives such as robotaxi and humanoid robots, as well as CEO Elon Musk's new incentive award, which received shareholder support earlier this month. Analysts are divided on this point; Langan maintains an underweight rating, citing ongoing demand risks, and has set a price target of $120.

Market analysts indicate that Tesla's short-term stock performance may depend more on progress toward AI and robotics goals than on vehicle volume.