Tesla Stock Drops After Setting a Delivery Record. What Wall Street Thinks.

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Tesla’s first-quarter deliveries and production were records for the electric vehicle maker. Shares were down in trading Monday.

Sam Yeh/AFP via Getty Images


shares dropped after notching delivery and production records.

The stock (ticker: TSLA) fell 6.1%, closing at $194.77 in Monday trading. For comparison, the

S&P 500
rose 0.4% while the

Nasdaq Composite
fell 0.3%.

Analysts, for their part, are looking ahead to Tesla’s next issue: gross profit margins.

Tesla reported first-quarter deliveries of 422,875 vehicles on Sunday, up from 405,278 vehicles delivered in the fourth quarter of 2022 and up from the 310,048 vehicles delivered in the first quarter of 2022.

Tesla produced 440,808 vehicles in the first quarter, up from 439,701 produced in the fourth quarter of 2022 and the 305,407 produced in the first quarter of 2022. Both were record quarterly figures.

TD Cowen analyst Jeffrey Osborne called the numbers “in-line” in a Sunday research report, noting that production exceeded deliveries again. Production has outpaced deliveries for four consecutive quarters. Building inventories can be a problem that leads to production cuts down the road, but the amount by which production exceeded deliveries in the first three months of the year fell compared with the fourth quarter of 2022.

Tesla says production exceeding deliveries is due to cars shipping to customers. Production above deliveries makes some sense for any company when deliveries are growing. That is also the case at

Rivian Automotive

(RIVN) and


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