Q3 deliveries came in at 343,830 units vs the wall street consensus of 362,733, representing roughly a $1 billion revenue shortfall and an estimated $300m of lost gross profit
Vehicle transportation capacity at a reasonable cost was the main reason provided by Tesla for missing estimates
Morgan Stanley believes that demand continues to outweigh supply, but does not expect Tesla to compensate for the FY shortfall fully in Q4.
2 million unit deliveries for FY 2023 remain on track, but any further scale is going to require significant reductions in overall supply chain costs and batter materials sourcing.
Morgan Stanley has an Overweight rating on $TSLA with a price target of $383.00
Interestingly, MS believes the current trading period through to 2023, represents Tesla's most China-dependent period with 30% of total sales coming from China.
