Tesla's October Deliveries Decline as Investors Watch Closely

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

In North America, October deliveries lagged behind the strong demand seen in September, coming in at around 45,000 vehicles, below the previous month's 60,000. This weakness is observed as buyers pulled forward their purchases ahead of 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 forecasting fourth-quarter deliveries of around 440,000 vehicles; this number is below Tesla’s nearly 500,000 deliveries in the third quarter. This situation could increase the likelihood of missing delivery targets, negatively impacting near-term expectations.

Despite softer sales, investors have increased their positions in Tesla stock over the past year. The reason for this is the growing interest in artificial intelligence initiatives such as robotaxis and humanoid robots, as well as CEO Elon Musk's new incentive award that received shareholder support in early November. Analysts are divided on this point; Langan maintains an underweight rating, citing ongoing demand risks, with a price target of $120.

Market analysts express that Tesla’s short-term stock performance could be more dependent on progress toward artificial intelligence and robotics targets rather than vehicle volume.