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Tesla Q3 deliveries miss, Rivian's beats estimates

Julie Hyman and Mariela Rosales

Tesla (TSLA) reported weaker-than-expected deliveries in its third quarter as factory upgrades impacted some production.

Rivian (RIVN) beat expectations for its third quarter deliveries, which increased more than 140 percent from last year. Shares declined, however, on concerns about the company's forecast.

Yahoo Finance Live discusses the news. For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Video transcript

JULIE HYMAN: Tesla shipping more than 435,000 vehicles last quarter, but that was weaker than analysts had anticipated. Factory upgrades forcing some production to be halted in the last three months. Despite the miss, Tesla maintaining its full-year forecast for deliveries at around 1.8 million.

Also, Rivian surprising Wall Street with better-than-expected numbers. Deliveries, they're jumping more than 140% from a year ago, now topping 15,000. It still has a long way to go to catch up with Tesla or some of the other truck makers that are out there.

Rivian, interestingly, today, is down 3%. There seem to be some concern over that company's forecast. Perhaps that's what's going on here. The full year delivery outlook missing analysts estimates.

And also interesting that-- I mean, there was a lot of anticipation that Tesla's deliveries were not going to be great.

- Yeah.

JULIE HYMAN: So perhaps just not a huge surprise here that it did come out and do that.

- Exactly right. I mean, I think on Tesla, there wasn't high hopes here or high expectations because there were these down times their factories, specifically Austin and Shanghai, as you noted, importantly guidance they're holding steady, their 2023 volume target still around 1.8 million vehicles. So that's unchanged.

The team at Wedbush, actually, thinks the factory downtime is likely means, by their math, 20,000 units shift to Q4. But obviously, we'll find out when they report earnings on October 18th.

JULIE HYMAN: Yeah, one of the other themes that I've seen a lot of analysts chatter about today is the margin figure at Tesla. There are a lot of questions around going forward, are we going to see a little more pricing firmness and stability when it comes to Tesla? And is that also going to have good implications for gross margins? That's one of the biggest questions for them, it feels like--

- And the cybertruck as well.

JULIE HYMAN: The cybertruck which they talked about maybe coming in the third quarter. Well, guess what?

- That is coming--

JULIE HYMAN: Third quarter's done.

- Yeah. Which is-- there we go. There's your triangular-shaped truck.

Yeah, there was the expectation for Q3. That has come and gone. And listen, that is very important if you're an investor, if you're a Tesla bull. Because you see there on the screen, the bulls think that truck-- they're counting on that as a tailwind for next year.

JULIE HYMAN: We'll see. We'll see about that.

- Are you skeptical of demand for the triangular truck? Is that what I'm picking up there? A little--

JULIE HYMAN: I'm skeptical. I mean, they've had a lot of engineering issues with it. Reportedly, it's a heavy truck, it's made of stainless steel, and so there are a lot of engineering issues. Aesthetically, it's not for me. But like--

- It's not for me either. But you know what, Julie Hyman, maybe were the outliers. We're going to find out. Maybe--

JULIE HYMAN: I don't know. With that price tag, I don't know how many people can afford it who would like it.

But just very quickly, we also got the Chinese automakers reporting deliveries as well. When you talk about competition for Tesla, particularly in China, it's coming from the homegrown automakers. So we had Li Auto, XPENG, and some of the others. Nio also reporting their numbers. They're all trading lower in the wake of reporting that. And, you know, obviously a lot of attention focused on China.

The Chinese markets are closed, by the way, we should mention, for a holiday week. So these guys trade in the US, but they're not trading in China at the moment.

- And of course, they are to bring back the Tesla, we know, the price cutting game, because Elon's been very upfront about his strategy, right. Volume, volume, volume, even at the expense of profit margins.

JULIE HYMAN: Yes.