Tesla slides as logistic issues widen deliveries and production gap

[mahatmakanejeeves]

Reuters

Tesla slides as logistic issues widen deliveries and production gap

Akash Sriram and Savyata Mishra
Mon, October 3, 2022 at 7:58 AM

(Reuters) - Tesla Inc shares fell about 7% on Monday after the world's most valuable automaker sold fewer-than-expected vehicles in the third quarter as deliveries lagged way behind production due to logistic hurdles.

Shares opened at a more than two-month low and if losses hold, Tesla would lose nearly $58 billion in market capitalization in a single day, more than the market value of General Motors Co as well as Ford Motor Co.

Tesla produced a record 365,923 vehicles in the quarter and delivered a new high of 343,830 vehicles, but still missed market expectations, with an unusually large gap between production and deliveries raising investor worries.

The company said it was unable to secure enough transportation during the peak time at a reasonable cost for vehicles made, while Chief Executive Elon Musk vouched "steadier deliveries" in the current quarter to reduce last-minute rush.

{snip}