SHARE OF THE WEEK: Tesla’s decline in deliveries puts pressure on

Tesla will kick off another big earnings season in the US next week after suffering its first decline in deliveries in more than a year.

The Texas-based electric car maker, which is run by Elon Musk, this month said it shipped 435,059 cars in the third quarter, well below analysts’ estimates of more than 456,000 and down from 466,140 in the previous three months.

It made 430,488 vehicles during this time – which was also below Wall Street predictions.

Musk had already warned that numbers would be dented after ‘summer shutdowns’ that were necessary at factories for product upgrades.

But the slump in deliveries will put pressure on Musk as he gears up to release the company’s financial results on Wednesday.

Tesla has also been cutting prices since the start of the year as it tries to boost sales in an uncertain economy and fend off competition from rivals such as Ford and China’s BYD – who are increasingly eating up market share.

Investors will be looking for more certainty about the pricing strategy and how this will impact profit margins. This comes despite the fact Tesla has said it is still on track for 1.8m car deliveries for 2023.

Sophie Lund-Yates at Hargreaves Lansdown said: ‘Tesla’s price cuts are driving confusion and uncertainty. Investors want to know whether a weakening economic outlook and rationalisation of consumer spending have the ability to upend volumes, which will send profits into reverse.’