Tesla expected to trade down on Q3 deliveries news, says Wells Fargo

Wells Fargo analyst Colin notes Tesla Q3 deliveries of 463K were slightly above IR consensus of 462K. This implies a record quarter in Q4 would be required to achieve FY24 consensus of 1.78M, which would be down 1% year-over-year, the firm adds. Wells believes year-over-year growth will be “notably lower” than 1%. Overall, the firm thinks the result is lower than buy-side expectations of 472K and would expect the stock to trade down on the news. Wells has an Underweight rating on the shares with a price target of $120.