Tesla (NASDAQ:TSLA) noticed its inventory fall greater than 6% because it reported supply numbers for the third quarter of 2024. These had been beneath expectations, however I don’t suppose buyers ought to fear.

As I see it, anybody proudly owning Tesla shares proper now has to suppose it’s much more than a automotive firm. And in the event that they’re proper, weak supply numbers do nothing to alter that.

Deliveries

Tesla delivered 462,890 autos between July and September. That’s in need of the 469,828 some analysts had been predicting. 

One motive this is likely to be a priority is that Tesla’s been specializing in volumes over income. To this finish, the corporate’s been providing varied incentives to keep up gross sales.

Given this, shareholders might need anticipated decrease margins. However supply numbers coming in beneath expectations signifies the plan hasn’t been as profitable as buyers might need hoped.

Finally although, I don’t suppose this can be a massive drawback. Even the most effective companies cope with challenges sometimes, but when I used to be a Tesla shareholder, my focus could be elsewhere.

Robotaxis

I believe the viability of Tesla as an funding comes down to its driverless car division. Put merely, that has to work to justify the present share price.

If it may well, the corporate may generate sufficient money to supply buyers with a return on an funding at as we speak’s costs. If not, I believe the inventory seems to be considerably overpriced.

That is the view ARK Make investments has on the enterprise as effectively. By 2029, Cathie Wooden’s agency expects 90% of Tesla’s income to return from its robotaxi enterprise, with lower than 10% from automotive gross sales. 

On this foundation, ARK expects the inventory to be value $2,600 per share in 2029. If – for no matter motive – the robotaxi operation doesn’t come to fruition, that price goal collapses to $350.

Outlook

Tesla’s anticipated to unveil its robotaxi in lower than every week. And I believe that is rather more vital for shareholders than the supply numbers for the third quarter.

The occasion’s been delayed from August, however I don’t count on this to occur once more. Even so, I’m aware that there’s a protracted strategy to go from unveiling the product to launching it.

The Cybertruck was unveiled in 2019, however the car didn’t go on sale till late 2023. And with driverless autos, there are additionally regulatory points that should be solved.

That is certainly not inconceivable – Waymo has round 700 driverless vehicles already in operation. However that makes use of a distinct system, so approval for Tesla is certainly not a formality.

Not fearful

As an electrical car (EV) firm, Tesla has some vital benefits over its rivals. However these alone don’t seem like sufficient to justify the present share price. 

In my opinion, the corporate’s viability as an funding comes down to its robotaxi enterprise. And that’s the place I believe buyers ought to focus their consideration.

I don’t see that weak automotive gross sales in 1 / 4 – or perhaps a yr – materially influence Tesla’s robotaxi prospects. That’s why I don’t suppose the market needs to be involved by the newest supply information.