Investors are eagerly awaiting Tesla’s third-quarter delivery figures, which are due to be reported on Monday. However, the estimates for these figures vary widely, causing some anticipation among Wall Street analysts.
According to Canaccord analyst George Gianarikas, the range of estimates for Tesla’s third-quarter deliveries has an unusually high standard deviation. While the consensus estimate stands at approximately 462,000 vehicles, predictions range from around 440,000 units to 510,000 units, as per FactSet data. This spread of 70,000 units is twice as large as it was in the second quarter when Tesla delivered about 466,000 units.
The expected decline in deliveries is attributed to several factors, including the timing of new product introductions, general weakness in the auto market, and comments made by Mr. Musk on the previous quarter’s earnings call. During the conference call, Tesla’s management also acknowledged that planned downtime for equipment upgrades at their factories might contribute to this decrease.
It is safe to say that Tesla’s upcoming delivery figures will provoke considerable interest among investors, as they navigate through a wide range of estimates and uncertainties surrounding the company’s performance in the third quarter.
Tesla Faces Mixed Reactions Amidst Delivery Concerns
As third-quarter delivery estimates for Tesla have undergone a slight downward revision, analysts and investors are expressing a range of opinions on the future prospects of the electric vehicle giant. While some remain optimistic about the company’s ability to bounce back, others have adopted a more cautious stance.
Analyst Opinions Vary
One such believer is Gianarikas, who rates Tesla shares as a Buy and has set a price target of $293. Despite the recent delivery concerns, Gianarikas advises investors not to place too much emphasis on this particular data point for the quarter. He highlights the forthcoming release of new products, including the highly anticipated Cybertruck, as well as the imminent deliveries of upgraded Model 3 vehicles. Additionally, he suggests that Tesla could benefit in the long term from the recent strike by United Auto Workers, as it may help improve the company’s cost structure relative to its competitors. It is worth noting that Tesla currently does not have a union representing its employees.
On the other hand, the overall sentiment on Wall Street seems to be more apprehensive. Approximately 41% of analysts covering Tesla stock currently rate it as a Buy, compared to an average Buy-rating ratio of approximately 55% for stocks in the S&P 500. This represents a decline from last year when around 64% of analysts were bullish on Tesla.
Investor Concerns Grow
Investors are also exhibiting some unease regarding the situation. Over the past two weeks, Tesla shares have experienced a decline of approximately 12%, primarily due to the downward revision in third-quarter delivery estimates. Initially projected to be slightly above 470,000 units, the revised estimates now hover just above 460,000 units.
Determining the impact of these delivery concerns on Tesla’s stock market performance is a challenge. It requires taking various factors into account, including market expectations, recent price trends, and the actual reported figures. The third-quarter delivery reaction for Tesla stock is particularly difficult to gauge, even for experienced investors and traders.
Despite the mixed reactions from analysts and investors, Tesla continues to be at the center of numerous developments within the electric vehicle industry. With a range of new products on the horizon and potential advantages arising from the recent strike, there is considerable anticipation surrounding the future of the company.
Tesla Stock on the Rise
Tesla’s stock experienced an impressive surge of 3% on Friday, outperforming the S&P 500 and Nasdaq Composite, which saw increases of 0.6% and 1.1% respectively.
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