Tesla stock has had quite the rollercoaster ride lately, particularly following Nvidia's recent earnings report and its own shaky sales figures from Europe. Investors are tuning in closely to these developments as they weigh the future potential of the electric vehicle giant.
To kick things off, let’s talk about Tesla's vehicle registrations. A recent report highlighted a concerning trend: Tesla's new vehicle registrations have declined sharply—over 20%—in the European market alone. This drop, recorded at 21%, aligns with data from the European Automobile Manufacturers' Association (ACEA), which noted just 11,088 vehicle registrations for October this year compared to the previous year.
Interestingly, this decline occurs even as the overall battery electric vehicle registrations across the EU rose by 2.4% during the same month. Markets like Denmark and the Netherlands are seeing increased popularity, but Tesla isn’t keeping pace. Year-to-date, the automaker is down over 11%, with totals of 192,661 new vehicle registrations since January.
This slump gives rise to serious questions about Tesla’s global delivery targets for 2023. To avoid showing declining delivery numbers from last year’s total of 1,808,581 units, Tesla needs to deliver at least 514,926 vehicles within the final quarter of the year—a target it has never achieved historically.
Analysts are weighing these numbers carefully. Troy Teslike, a renowned researcher on Tesla’s performance, weighed in on X (formerly Twitter), saying, “Even if they sell out all their inventory**in the US, it’s still going to be tough to hit” the ambitious target Tesla has set for itself.
Market reactions have been dramatic. Following these reports, Tesla's stock dropped by 1.2% on one of the trading days, landing at $342.03 and dipping slightly more before the market opened the next day. Year-to-date performance is still relatively strong, with the stock showing gains of around 37.7% according to Benzinga Pro data, but the recent news has certainly stirred some anxiety among investors.
The situation doesn't look good for the automaker as it heads toward what it hopes will be record fourth quarter deliveries. The company’s previous quarter, Q3, saw deliveries clocking at 462,890 units—a modest 6.4% increase year-on-year, but still short of the company’s soaring targets.
Contrast this with Nvidia, whose recent earnings report dazzled onlookers and overshadowed Tesla's woes. The semiconductor giant reported significant revenue increases, prompting optimism also about the future of AI and autonomous driving technologies, areas where Tesla has heavily invested. This juxtaposition has led some analysts to draw parallels between the two companies, questioning how well Tesla will be able to navigate through potentially turbulent times identified by declining sales figures and ambitious quarterly goals.
Needless to say, the EV and tech markets are swirling with speculation. Analysts are sharpening their pencils and crunching numbers, trying to predict whether Tesla can rebound as it tackles challenges not just from underwhelming European sales but also from rivals like Rivian, Lucid Motors, and traditional automotive giants increasingly stepping up their game to capitalize on the EV craze.
So, where does this leave Tesla? It's clear the company is facing significant headwinds as it tries to align itself with the booming global demand for electric vehicles, all the more urgent considering its ambitious self-imposed targets. With the likes of Tesla headlining the shift to electric, the stakes are high, and the pressure is mounting to deliver on those promises.
Investors remain on edge and will likely keep their ear to the ground, prepared for what could be defining moments for both Tesla’s stock and the EV industry as whole.
