Tesla's logistical challenges overshadow record deliveries

Tesla Inc announced on Sunday lower-than-expected electric vehicle deliveries in the third quarter as logistical challenges overshadowed record deliveries.

The largest electric carmaker said "it is becoming increasingly difficult to secure vehicle carrying capacity at a reasonable cost," while some analysts were concerned about demand for high-priced products due to the weakening global economy. "The economy on the margins still has a negative impact for Tesla (NASDAQ:TSLA), and that's mostly logistics. But I think there are some demand issues as well," Wedbush Securities analyst Dan Ives told Reuters after the delivery results. "There are dark clouds over the auto industry. And Tesla is not exempt." Ford Motor (NYSE:F) said last month that inflation-related costs would be $1 billion more than expected in the third quarter and that a parts shortage was delaying deliveries. Apple Inc (NASDAQ:AAPL) is scaling back plans to ramp up production of its new iPhones this year after an expected surge in demand failed to materialize, Bloomberg reported last month, citing people familiar with the matter. "I think electric vehicles are probably going to go through a bit of a rough patch because people are probably going to be a bit hesitant and less urgent to buy something new," said Ed Moya, senior market analyst at OANDA. Tesla delivered 343,830 electric vehicles, a record for the world's most valuable automaker, according to Refinitiv, but less than the 359,162 expected by analysts on average. A year ago, Tesla had delivered 241,300 units. The latest deliveries lagged behind Tesla's production of 365,923 vehicles, a rarity for the automaker, which has seen its deliveries higher or similar to production in most recent quarters. "As our production volumes continue to increase, it becomes increasingly difficult to secure vehicle transportation capacity during these busy logistics weeks and at a reasonable cost," Tesla said in a statement on Sunday. "We are smoothing out the crazy end-of-quarter delivery wave to reduce ramp-up costs and reduce stress on the Tesla team," Tesla CEO Elon Musk said in a statement on Sunday. Follow Global Economic Developments on Social Media! Click here to follow Ieconomy official Facebook account! Click here to follow Ieconomy official Instagram account! Click here to follow Ieconomy official Twitter account!