Tesla (TSLA) continues to electrify the market, but as the third quarter comes to a close, analysts are divided about its prospects. The upcoming robotaxi event on October 10 is adding fuel to the fire, with expectations running high. Barclays predicts that Tesla will report Q3 deliveries of around 470,000 units, up 8% year-over-year and surpassing the consensus estimate of 461,000. They believe this spike in numbers is mainly driven by strong sales in China, which, according to their research note, shows “dissipated concerns on fundamentals.” A strong delivery report could bolster Tesla’s stock, which is currently on a bumpy ride.
Analysts Project Mixed Delivery Estimates
Wolfe Research agrees with the bullish sentiment but places Tesla’s Q3 delivery closer to 460,000 vehicles, aligning with the broader consensus. They note the focus on profitability, particularly the Auto Gross Margins, which they anticipate may show modest improvement. Goldman Sachs echoes this cautious optimism, forecasting around 460,000 deliveries but suggesting a mixed performance across regions—strong in China, flat in the U.S., and weak in Europe.
Tesla’s Robotaxi Hype Builds
As the excitement around the robotaxi event grows, UBS maintains a Sell rating with a price target of $197. They caution that while the hype is palpable, the reality may not live up to investors’ high expectations. Conversely, BofA is more optimistic, holding a Buy rating with a price target of $255. They argue that the event is a crucial opportunity for Tesla to demonstrate its Full Self-Driving technology and outline how its robotaxi service might function. However, they believe that a commercial rollout is still years away, likely not until 2025 or later.
GM Collaborates with Tesla on Charging Infrastructure
In other news, General Motors (GM) is joining forces with Tesla to expand charging options. Starting September 18, GM customers can access over 17,800 Tesla Superchargers by using a GM-approved NACS DC adapter. This move is a win-win for EV drivers, as it significantly increases the charging network available to them. With GM planning to provide access to over 231,800 public chargers, this partnership aims to streamline the charging process for both companies’ customers.
Bernstein Downgrades GM Amid Challenges
Yet, not all news is rosy for GM. Bernstein recently downgraded the automaker to “Market Perform” with a $53 price target, citing potential headwinds as the company prepares for its upcoming capital markets day. With continued inventory buildup and rising pricing challenges, analysts are urging a cautious approach.
Is Tesla a Buy, Sell or Hold?
Analysts remain sidelined about TSLA stock, with a Hold consensus rating based on eight Buys, 15 Holds, and nine Sells. The average TSLA price target of $173.29 implies a downside potential of 6.2% from current levels.
