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- Levitating Roadster and over 486,500 vehicle deliveries fail to lift stock as Tesla shares drop 7.3%, while investors remain concerned about high valuation and delayed returns on massive AI investments
By Ali Canberk Ozbugutu, Emirhan Yilmaz and Emir Yildirim
ISTANBUL (AA) - Tesla’s recent showcase of a futuristic flying car and better-than-expected vehicle deliveries failed to lift its stock as the electric vehicle (EV) maker struggles to convince investors of its long-term growth potential.
The firm’s ambitious advancements and stock market performance sharply diverged, bringing concerns over market valuations, cash flows and profitability to the forefront.
Tesla shares have lost more than 18% since the start of the year amid growing concerns over overvaluation.
The EV maker’s shares dropped 3.57% in September and an additional 7.3% last week.
Despite a major product event at which the automaker unveiled a flying version of its two-seater Roadster sports car, its shares saw a sell-off.
The flying Roadster uses 10 nozzles and ultra-high-pressure air tanks to seemingly defy gravity.
Tesla showcased the vehicle’s potential by having it climb a steep ramp and remain suspended upside down thanks to suction power, perform a midair somersault and land after leaping over a row of parked cars.
Tesla CEO Elon Musk said the self-driving car reached a speed of around 97 kilometers (60.2 miles) per hour in less than one second.
Despite this futuristic showcase, analysts warned that the firm’s massive investments in robotaxis, the humanoid Optimus robot and artificial intelligence (AI) infrastructure clouded its timeline for sustainable revenue.
Meanwhile, Tesla’s five-year credit default swap (CDS) spread rose to 188.1 basis points, its highest level since May 2023, as these financial concerns were reflected in the debt market.
All eyes turned to the firm’s third-quarter earnings, scheduled for release on Wednesday after US markets close.
Tesla’s quarterly earnings are expected to reach $28 billion, with earnings per share of $0.45.
The earnings report follows strong global production figures after Tesla produced 464,391 units, up 3.8% year-on-year, and delivered 486,532 vehicles.
Tesla car sales in the EU reached 142,165 units in January-August, marking a surge of 65.9%, while sales in August alone rose 52.7% to 12,547 units, and the carmaker accounted for 1.9% of total car sales in the region.
Ali Canberk Özbuğutu,Emirhan Yılmaz
