What Happened?
Shares of electric vehicle pioneer Tesla (NASDAQ: TSLA) fell 4.1% in the afternoon session after the stock extended its negative momentum as the company reported record third-quarter deliveries that beat expectations, but investors grew concerned about future demand. Tesla delivered a record 497,099 vehicles, which was well above forecasts. However, the market reacted negatively because the strong sales were largely attributed to a rush from U.S. consumers to buy an electric vehicle before a key federal tax credit expired at the end of September. This created a belief among investors that demand was pulled forward, potentially leading to a weaker fourth quarter and the following year. Adding to the concerns, the record results were also offset by a continuing sales slowdown in the European market.
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What Is The Market Telling Us
Tesla’s shares are extremely volatile and have had 47 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 1 day ago when the stock dropped 3.8% on the news that the company reported record third-quarter deliveries that beat expectations, but investors grew concerned about future demand.
Tesla is up 13.1% since the beginning of the year, but at $428.95 per share, it is still trading 10.6% below its 52-week high of $479.86 from December 2024. Investors who bought $1,000 worth of Tesla’s shares 5 years ago would now be looking at an investment worth $3,023.
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