Tesla's Third-Quarter Delivery Figures Due Monday: A Wild Ride Expected
Investors are eagerly awaiting Tesla's third-quarter delivery figures, set to be reported on Monday. This quarter's estimates have a wide range, creating uncertainty in the market.
Troy D. Hanson
September 29, 2023
Investors are eagerly awaiting Tesla's third-quarter delivery figures, set to be reported on Monday. However, this quarter's estimates are all over the place, creating an unusually high standard deviation. Canaccord analyst George Gianarikas highlights this uncertainty in his report.
Wall Street consensus estimates anticipate Tesla delivering around 462,000 vehicles in Q3. Nevertheless, the range of predictions spans from 440,000 units to 510,000 units, according to FactSet data. This 70,000-unit spread is double the size compared to the second quarter when Tesla achieved deliveries of approximately 466,000 units.
Analysts expect deliveries to decrease sequentially due to factors including the timing of new product introductions, general weakness in the auto market, and comments made by Mr. Musk during last quarter's earnings call. Tesla's management mentioned in the conference call that planned downtime was being undertaken at their factories to upgrade equipment.
Gianarikas, an industry expert, remains optimistic about Tesla's future despite recent delivery concerns. With a strong Buy rating and a $293 price target for the stock, he advises investors not to focus too much on the delivery numbers for this quarter. He believes that new and exciting products, such as the Cybertruck, along with the upcoming release of the upgraded Model 3, will drive growth for Tesla. Additionally, he suggests that the recent UAW strike could ultimately benefit Tesla by improving its cost structure compared to its competitors who have unions.
However, other analysts on Wall Street are feeling slightly more apprehensive. Currently, only 41% of analysts covering Tesla stock rate it as a Buy, whereas the average Buy-rating ratio for stocks in the S&P 500 is about 55%. It's worth noting that a year ago, about 64% of analysts covering Tesla held a positive outlook on the stock.
The average price target set by analysts for Tesla stock currently sits around $258 per share, which is lower compared to a year ago when it was approximately $318 per share. This drop reflects the hesitation among investors and analysts alike.
Investors too have shown signs of nervousness as Tesla shares have experienced a decline of approximately 12% over the past two weeks. This decline can be attributed to the downward revision of third-quarter delivery estimates from just above 470,000 units to just above 460,000 units.
Determining how the stock market will react to any particular data point is always a challenge. Factors such as expectations, recent stock price performance, and actual reported figures all play a role. The reaction to Tesla's third-quarter delivery numbers is especially complex to gauge.
In conclusion, while some experts like Gianarikas remain bullish on Tesla's future, it's clear that there is a sense of caution circulating among analysts and investors alike. With the stock experiencing a recent downturn and the lower percentage of Buy-ratings compared to the broader market, Tesla faces challenges in regaining market confidence. However, with new product releases and potential cost improvements from the UAW strike, the electric vehicle giant may still have plenty of positive developments in store.
Tesla Stock Rises in Premarket Trading
Tesla stock soars 3.5% in premarket trading on Friday, outperforming the S&P 500 and Nasdaq Composite futures, which are up 0.7% and 1% respectively.
by Al Root
Tesla continues to make impressive gains in the stock market, with its shares rising by 3.5% in premarket trading on Friday. This surge in stock value places Tesla ahead of the S&P 500 and Nasdaq Composite futures, which have experienced more modest gains of 0.7% and 1% respectively.
Investors and market analysts are keenly observing Tesla's performance, as the company remains a significant player in the electric car industry. With their forward-thinking approach and innovative technologies, Tesla has continually attracted investors seeking long-term growth opportunities.
As the overall stock market experiences fluctuations, Tesla has consistently demonstrated its resilience and ability to outshine competitors. This is reflected in its steady rise in premarket trading, highlighting strong investor confidence in the company's future prospects.
Keep an eye on Tesla as it continues to navigate the dynamic landscape of the stock market. With its impressive track record and dedication to pushing boundaries, Tesla remains a noteworthy contender in today's market.