Tesla misses estimates for third-quarter deliveries

The news: Electric vehicle maker Tesla missed market estimates for third-quarter deliveries as planned upgrades at its factories forced production halts.

The numbers: The car maker delivered 435,059 vehicles in the three months to 30 September, down nearly 7% from the preceding quarter and lagging analyst estimates for 459,949 vehicles. Tesla shares dropped nearly 3% on the news but rebounded later to end slightly higher for the day.

The context: The lower deliveries were the result of upgrades at its factories to roll out a newer version of the Model 3 mass-market sedan. Some analysts believe the upgrades could spark a rebound in deliveries in the fourth quarter by allowing Tesla to refresh its line-up and compete better with offerings from US and Chinese rivals. The company has retained its full-year target to deliver 1.8 million vehicles. However, it has also been cutting prices aggressively to counter the effects of rising competition and a slowing EV market. In the third quarter, Tesla cut prices of its premium Model S and Model X cars by as much as 21% in main markets China and the United States.