Tesla SHATTERS Record, Rivian Punches Itself In The Face

TL;DR

Tesla sets a record for monthly deliveries in China, but also faces a voluntary recall of over 12,000 vehicles due to steering and suspension concerns.

Transcript

Tesla was one of the names hit hard in the sell-off turning in its worst week since March 2020 but the company is making inroads we learned today in China just setting a record for monthly deliveries for September rivie Engineers is thinking today you can see the stock off just around seven percent after voluntarily recalling more than 12 000 Vehic... Read More

Key Insights

• 💪 Tesla achieves record-breaking monthly deliveries in China, showcasing its strong presence and demand in the market.
• 🤨 The voluntary recall of over 12,000 vehicles raises concerns about Tesla's image and credibility, especially with a critical Q4 approaching.
• 💗 Recalls are becoming common in the electric vehicle industry, signaling the need for safety measures in the rapidly growing EV market.
• 😀 Legacy automotive manufacturers are also likely to face recalls as EV adoption continues to increase.
• 🚚 Supply chain challenges and potential lockdowns in China pose risks to Tesla's production and delivery capabilities.
• 😘 The analyst's caution and low price target reflect ongoing skepticism towards Tesla's valuation and growth prospects.
• 🥶 Demand for ICE vehicles is collapsing, leading to a decline in sales for legacy automotive manufacturers.

Questions & Answers

Q: What is the cause of Tesla's voluntary recall?

The recall is due to concerns over a possible steering and suspension hazard. Tesla is tightening a bolt on the arm in front of the steering knuckle to address the issue.

Q: How does the recall impact Tesla's upcoming goals and image?

The recall is seen as a setback for Tesla, as they have to meet their delivery targets for Q4, which could potentially be affected by the recall. It also raises credibility issues and is viewed as a black eye for the company.

Q: Are recalls common in the electric vehicle industry?

Recalls are expected to be common in both new EV startups and legacy automotive manufacturers. As more EVs hit the road, recalls for safety concerns will become more prevalent.

Q: How is Tesla performing in China overall?

Tesla's China factory is their primary export hub, and they have been experiencing strong demand. They set a record for monthly deliveries in China, with their Shanghai factory producing and delivering around 83,000 vehicles per month.

Summary & Key Takeaways

• Tesla achieves a record-breaking month for deliveries in China, surprising bearish analysts.

• However, the company is also facing a voluntary recall of over 12,000 vehicles due to steering and suspension issues.

• Wall Street expresses concern about this recall, especially with the critical Q4 coming up and the goal of delivering 25,000 cars a year.