Tesla deliveries in focus amid price cuts, muted China demand,

Tesla  (TSLA) - Get Free Report shares edged higher in pre-market trading ahead of the anticipated release of the carmaker's third quarter deliveries prior to the opening bell.

A combination of muted demand in China, the group's most-important market, as well as production downtimes at gigafactories in Shanghai and Austin, have likely combined for a lower overall quarterly delivery total of around 459,000 units over the three months ending in September, according to analysts' forecast.

Tesla delivered a record 466,140 new cars over the second quarter, an 83.5% increase from a year earlier, and 422,875 over the three months ending in March.

Tesla sold around 150,000 cars in China over the months of July and August, according to official tallies from the China Passenger Car Association, compared to around 171,000 over the May June period. Tesla sold just under 250,000 cars in China over the second quarter, according to CPCA data, well ahead of last year's covid-affected tally.

The CPCA said August sales from the Austin electric-vehicle producer rose 9.3% from a year earlier to 84,159 units, a tally that came in firmly below June levels even as the carmaker unveiled two major price cuts in the span of three days.

Tesla also followed those cuts with another set of reductions last Friday, on top of rebates for buyers in the U.S., China and Europe as part of its "Refer and Earn" program. 

"Deliveries have been strong this quarter with inventory being worked down across the world for Tesla based on our tracking as the vast majority of the price cuts now appear to be in the rear-view mirror," said Wedbush analyst Dan Ives. "Despite the noise we believe Tesla had a relatively strong China quarter and should be on track to a very strong end of the year as demand/price cuts/Model 3 refresh are clearly resonating with China EV consumers."

Tesla shares were marked 0.43% higher in pre-market trading to indicate and opening bell price of $251.30 each. 

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