Tesla Inc (NASDAQ:TSLA) shares dropped Thursday after the electric car maker came up short on expectations for vehicle deliveries in the third quarter. The company said it delivered a record 97,000 vehicles in the quarter. But that fell short of analysts' expectations of 99,000.
The Palo Alto, Calif.-based company reported it achieved record net orders in Q3 and are entering Q4 with an increase in our order backlog. As was also the case in Q2, nearly all of our Model 3 orders were received from customers who did not previously hold a reservation, solidifying the transition to generating strong organic demand. We are continuing to focus on increasing production to meet that demand.
"Our net income and cash flow results will be announced," said Wednesday’s news release, "along with the rest of our financial performance when we announce Q3 earnings. Our delivery count should be viewed as slightly conservative, as we only count a car as delivered if it is transferred to the customer and all paperwork is correct.
"Final numbers could vary by up to 0.5% or more. Tesla vehicle deliveries represent only one measure of the company’s financial performance and should not be relied on as an indicator of quarterly financial results, which depend on a variety of factors, including the cost of sales, foreign exchange movements and mix of directly leased vehicles."
Shares in Tesla began Thursday trading off $9.09, or 3.7%, at $234.04
