Tesla stock tanks on Q3 earnings – Cathie Wood Swoops!

Mini update: 4 October 2022 $TSLA

While the market broadly traded up TSLA stock fell by $22.85 per share or 8.6%. This was on the back of record quarterly earnings results, which despite being the best posted to date by the company fell short of investor expectations. For the third quarter TESLA produced 365,923 vehicles and delivered 343,830 vehicles. According to Bloomberg, analysts were expecting deliver of 358 000 vehicles – so a miss of about 14 000 vehicles or missing the consensus delivery target by about 4%.
The company cited delivery issues to account for the 22 000 vehicles that were officially in transit to customers which stemmed form efficiency constraints as the company grows which are further compounded by the fact that cars are large items to ship globally.
Others have viewed this delivery miss as a sign that TESLA’s sales may be slowing down, in part because of the increasing pressure on consumers due to global inflation issues.
Looking forward Tesla CEO Elon Musk has set an ambitious target to produce about 495,000 Model Y and Model 3 vehicles in the fourth quarter of this year. The two vehicle models account for roughly 95% of Tesla’s output.
Cathie Wood’s Ark Invest, took full advantage of the TESLA stock sell off, by buying 132 000 shares during Monday’s trade. So while many have debated whether TESLA was overpriced at around the $300 per share mark, Cathie Wood, seems to believe that it is at fair price – which could be a further sign of a bit of a retail lead rebound coming for the stock, given the popularity of TESLA and Cathie Wood with large segments of the Retail Scene.

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