Analyst Dan Ives of Wedbush Securities described the sell-off as a “knee-jerk” reaction.
“As the street digests this eye-popping number, the stock should head higher over the coming days and weeks,” he wrote in a report, noting the sales figure beat Wall Street estimates of 136,350 cars.
“We believe China was a major source of strength this quarter,” Ives wrote, adding that the record car sales “should translate into a nice [earnings] upside vs the street for third quarter, with the profitability trajectory on an upward path moving forward.”
Despite the drop on Friday, Tesla shares are still up nearly 400% for the year.
The third-quarter sales figure included 15,200 of the more expensive Model S and Model X cars, and 124,100 of the lower-priced Model 3 sedan and Model Y SUV.