Tesla (TSLA) reported third-quarter delivery numbers on Wednesday that fell short of expectations, causing the stock to drop more than 5% in early trading. The electric vehicle manufacturer delivered 462,890 vehicles from July to September, reflecting a 6.4% increase compared to the previous quarter but a decline from the 466,000 vehicles delivered during the same period last year. Analysts had anticipated deliveries to be around 463,897, according to Bloomberg.

The majority of Tesla’s deliveries came from the Model 3 and Model Y, which collectively accounted for 439,975 units.

Before the release of the delivery figures, Tesla’s stock had seen a rise of approximately 20% over the past month, buoyed by anticipation for its upcoming robotaxi event scheduled for October 10 and positive sales trends emerging from China. However, investors have expressed concerns about a “notably lower” annual vehicle growth rate, a warning issued by Tesla following the first quarter of this year.

The company is facing significant competition in China from local automakers like BYD and Xpeng. Recent price reductions have further pressured profit margins amid intensifying competition.

Analysts are looking ahead to the robotaxi event, viewing it as a crucial moment for Tesla’s future and its ambitions in artificial intelligence. Dan Ives, a Wedbush analyst, emphasized the importance of the event in a note to clients, calling it a “seminal and historical day” that could mark a new chapter for Tesla in terms of growth in autonomous driving, Full Self-Driving (FSD), and AI technology.

Tesla is set to report its third-quarter earnings on October 23, which will provide further insights into the company’s performance and strategic direction. The recent challenges highlight the competitive landscape Tesla is navigating, but the upcoming events could offer pathways for renewed growth and innovation.