Deutsche Bank analyst Edison Yu expects Tesla's (TSLA.O) third-quarter deliveries to rise year-over-year, at least in line with Wall Street consensus expectations.
Tesla shares failed to maintain gains on Thursday, falling for the first time in four days, despite optimism about third-quarter deliveries and Tesla's Robotaxi event in two weeks.
Tesla shares closed down 1.1% at $254.22. The stock opened at $260.68; the stock price has not exceeded the $260 level since mid-July. The S&P 500 and Dow Jones Industrial Average rose 0.4% and 0.6%, respectively.
The overall market rally initially helped share prices, but the impact faded. U.S. stocks reacted positively to China’s latest announcement of more stimulus measures.
The recent rally in Tesla’s stock price isn’t just due to China’s stimulus policies. Tesla has had an exceptionally strong run over the past month, with shares up more than 20% heading into Thursday’s trading session.
One factor driving the stock's recent gains has been the Federal Reserve's interest rate cut on Sept. 18. Since then, shares have risen nearly 12%. Lower interest rates reduce car payments, making vehicles more affordable, which in turn boosts demand.
Delivery expectations also helped. Wall Street expects Tesla to deliver about 460,000 vehicles in the third quarter, up about 6% year-over-year, according to FactSet. Showing growth is critical. Tesla delivered about 831,000 vehicles in the first half of 2024, down about 7% year-over-year.
Most Wall Street reports previewing earnings were positive, noting record deliveries in China. Deutsche Bank analyst Edison Yu said Thursday he expects deliveries to be at least in line with consensus numbers. He rates Tesla stock a "buy" with a $295 price target.
Tesla shares also rose on anticipation of the company's Robotaxi event on October 10.
While robotaxi services are a significant opportunity, Tesla still has a lot to prove, wrote Emmanuel Rosner, an analyst at Wolfe Research.
He said Thursday that the company has "important competitive advantages, but investors may need to gain confidence in Tesla's progress toward fully autonomous vehicles. Proving that will be difficult, but this event could be a starting point."
Rosner rates Tesla stock a "hold" and does not have a price target.
Tesla is expected to reveal a physical robotaxi on Oct. 10 and tell investors when it might launch a self-driving taxi service. How the event will be received by the market is hard to predict. William Blair analyst Jed Dorhimer said Tesla shares typically rise before major company events and fall after them.
That's the pattern he's observed. Dorhimer isn't bearish. He rates Tesla stock a "buy," meaning he expects the stock to outperform the broader market, and doesn't have a price target.
Article forwarded from: Jinshi Data
