On Monday, Tesla Inc (NASDAQ: TSLA) reported its vehicle deliveries slowed down during the third quarter, raising concerns about flagging demand. Also on Monday, Tesla EV rival, Rivian Automotive (NASDAQ: RIVN) topped quarterly delivery estimates as it more than doubled EV production.
On Tuesday, General Motors (NYSE: GM), Toyota Motor Corporation (NYSE: TM) and Honda Motor Co Ltd (NYSE: HMC) also told a different story by posting stronger-than-expected US auto sales.
Tesla Came Short Of Estimates But Remains On Track To Achieve Its Annual Targets
Analysts expected Tesla to report a decline as the EV king paused production at some of its facilities in order to refit its assembly lines. Tesla delivered 435,000 vehicles worldwide in the third quarter, which is less than 466,000 EVs it delivered in the second quarter. But Tesla reaffirmed it is still on track to deliver 1.8 million vehicles this year, topping 2022's deliveries of 1.3 million EVs.
Rivian Beats Q3 Delivery Estimates As It Doubles Production
As supply chain challenges eased, Rivian is now on track to make 52,000 EVs this year. For the quarter ended on September 30th, the maker of R1T pickup trucks, R1S SUVs and EDV commercial vans delivered 15,564 vehicles, topping Visible Alpha's estimate of 14,740 vehicles as deliveries rose 23% quarter-over-quarter and 136% YoY. As for production, Rivian made a new record as output rose 121% YoY as it made 16,304 battery electric vehicles (BEV) at its manufacturing facility in Normal, Illinois.
General Motors Extended A Strong Year But The Impact Of The UAW Strike Is Yet To Be Seen
General Motors posted its U.S. sales rose 21% YoY to 674,336 vehicles. Sales were fueled by strong demand for pickups, crossover SUVs and EVs with EV sales rising 28% quarter-over-quarter. However, General Motors still did not address the impact of the ongoing strike and back in 2019, the 40-day walkout costed the Detroit automaker $3.6 billion and resulted in a 6% sales decline in the fourth quarter.
Toyota And Honda Are Enjoying Great Momentum That Is Poised To Continue Throughout The Year
With a strong September that ended the quarter, Toyota sold 590,296 vehicles during the third quarter, which translates to a 12.2% rise. EV sales made almost a third of September sales that rose 13.9% compared to 2022's September as Toyota sold 203,904 vehicles and expects the strong momentum to continue for the remaining months of 2023.
During the third quarter, Honda sold 339,143 vehicles, with sales rising 52.7%. Honda might have been slow to enter the EV race, but it recently unveiled its new EV. With the 2024 Prologue, an all-electric sports SUV, Honda promises to challenge Tesla and its Model Y. With the help of GM with which it will work on two EVs, Honda might have a shot at catching up in the EV race.
The UAW Strike Overshadowed Strong Q3 Deliveries
Tesla's dominance is being challenged away both in China and the U.S, but the EV king could profit from the unprecedented UAW strike as the costs and possible increase in workers' wages can only widen Tesla's cost advantage. As the UAW strike extents into its third week with analysts estimating costs to be nearing $4 billion, Ford Motor (NYSE: F) is due to report its third quarter U.S. sales later today while Stellantis (NYSE: STLA) posted a 1.3% YoY drop in sales as it sold 380,563 vehicles in the third quarter.
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