Tesla Stock Forecast: Analyst Advice on Q3 Delivery Numbers

In recent quarters, Tesla (TSLA:NSD) has consistently outperformed its prior delivery records. However, as the electric vehicle (EV) giant gears up to report its Q3 results, investors are being cautioned not to place too much emphasis on the delivery numbers. This sentiment from investors suggests an optimistic outlook for Tesla stock forecast.

Production Slowdown Looms:

Following Q2 earnings, Tesla CEO Elon Musk warned of a potential end to the delivery-winning streak in Q3. The reason behind this potential disruption is attributed to planned “summer shutdowns for a lot of factory upgrades.” In the manufacturing realm, decreased production often correlates with reduced deliveries.

Tesla Delivery Projections:

In the previous quarter, Tesla achieved a production figure of 479,700 vehicles, resulting in deliveries totaling 466,140. Q3 estimates from various analysts have yielded a broad range, with the consensus prediction hovering around 461,000 deliveries. However, Canaccord analyst George Gianarikas stands on the more conservative side, projecting roughly 443,000 deliveries for the quarter. Importantly, Gianarikas asserts that this time around, investors should not misguide themselves by focusing excessively on the delivery figure.

New Products in the Mix:

The introduction of a refreshed Model 3 since the Q2 call is a significant factor contributing to the uncertainty surrounding Musk’s statements. Tesla plans to deliver the upgraded Model 3 to China and Europe in 4Q23, and the highly anticipated Cybertruck is also expected to become available, likely in Q4. Gianarikas suggests that this wave of new products could potentially cause the projected Q3 dip. He notes that these offerings “seem to have strong underlying demand” and are poised to make an impact in Q4.

In addition to these product developments, Gianarikas points out other positive elements on Tesla’s horizon. These include a potential UAW strike with favorable implications, the implementation of giga-casting technology that could boost margins, and the emergence of the Optimus robot.

A Focus on the Long-Term:

Considering these factors, the analyst urges investors to focus on the medium to long term and not let potential downside volatility in the Q3 delivery numbers sway them. As a result, Gianarikas reiterates a Buy rating for Tesla stock, suggesting a 17% increase in share value over the next year.

Tesla Stock Forecast:

Based on the Tesla stock forecast from 29 analysts, the average target price is USD 244.97. This value ranges as high as USD 400 and as low as USD 112 for October 2024.

Analysts Ratings:

Tesla maintains an average analyst rating of “Buy.” Stock Target Advisor’s analysts are “Slightly Bullish,” supported by 11 positive signals and 5 negative signals.

Recent Performance:

At the most recent close, the stock price stood at USD 250.22. This price has changed by +2.18% over the past week, +2.13% over the past month, and -5.67% over the last year.

Conclusion:

Investors are cautioned against placing undue emphasis on the delivery numbers alone. Analyst George Gianarikas advises looking beyond Q3’s potential delivery dip, highlighting the introduction of new products and a series of positive developments on Tesla’s horizon. (drogueriasanjorge.com)

Maryam Nasir