Tesla's stock price declines following the company's failure to meet delivery expectations.

• Tesla posted third-quarter deliveries and production numbers on Wednesday.
• In the quarter that ended on Monday, the company's stock price experienced a 32% increase.
• Tesla faces increasing competition, most notably in China.

On Wednesday, the company released its third-quarter vehicle production and deliveries report, which caused the stock to fall as much as 3.7% Monday morning.

Here are the key numbers:

Total deliveries Q3 2024: 462,890

Total production Q3 2024: 469,796

According to FactSet StreetAccount's estimates, analysts predicted deliveries of 463,310 in the period ending Sept. 30.

The number of deliveries made by Tesla is not explicitly stated in their financial disclosures, but is the closest approximation to units sold reported by the company. This metric is closely monitored on Wall Street.

In the previous fiscal year, Tesla delivered 435,059 vehicles and produced 430,488 electric vehicles. This quarter, the company reported 443,956 deliveries and manufactured 410,831 vehicles.

In China, Tesla is facing intensified competition from companies such as BYD and Geely, as well as emerging automakers like Li Auto and Nio.

In the U.S., EV competitors are maturing, while legacy automakers are selling more electric vehicles after scaling back more ambitious goals for electrification.

Despite a 60% increase in EV sales for the third quarter compared to the previous year, GM's electric business remains small, with only 32,100 units sold in the latest period, accounting for just 4.9% of the company's total sales.

Ford plans to report results on Wednesday.

Although Tesla hasn't given specific instructions for 2024 deliveries, executives anticipate a lower growth rate in deliveries this year compared to the previous year, despite the addition of the angular stainless steel Cybertruck to their product line.

On Wednesday, the company announced that it had deployed 6.9 GWh of energy storage products in the quarter.

Tesla's shares rose 32% in the third quarter, reversing their yearly loss. Currently, the stock is up 3.9% in 2024, lagging behind the Nasdaq, which has increased by 19%.

Elon Musk's antics, including endorsing former President Donald Trump and sharing racist hate and false claims about immigrants and election fraud on X, have put Tesla's brand under pressure in the U.S.

In the U.S., Tesla remains the top seller of battery electric vehicles, with Hyundai following closely behind.

In the upcoming third-quarter earnings report, investors will closely examine profit margins.

Tesla has been providing appealing financing options and various incentives to boost sales in both China and the U.S. in recent months. Prior to reporting earnings, Tesla will host a marketing event on October 10th, where they will reveal the design of "dedicated robotaxi."

Despite Musk's long-standing promise of self-driving cars from Tesla, the company has not yet delivered. In contrast, competitors such as Waymo and Pony.ai have already started providing commercial robotaxi services.

RBC's Tom Narayan states that Tesla provides a safe haven for investors.