Tesla Inc.’s third-quarter deliveries were expected to be strong, Morgan Stanley analyst Adam Jonas wrote in a note, adding that even bears had expected an “unusually strong” show. Tesla shares were down 2 per cent at 10 a.m. in New York.

Earlier today, Tesla reported deliveries of 83,500 vehicles in the quarter, of which, 55,840 were Model 3 sedans. It produced 53,239 Model 3s during the period. Morgan Stanley’s Jonas said the Model 3 mix “skewed extremely high-end with production of dual motor exceeding single motor and nearly 100 percent of production dual motor over last few weeks.”

RBC analyst Joseph Spak also said that the delivery and production numbers were mostly in line with expectations, adding that gross margins for the quarter could be solid, as Tesla said deliveries were limited to higher-priced variants. “Bears may interpret this commentary that Tesla has gone through higher-end U.S. Model 3 demand,” Spak added.