Tesla shares edged lower in early Wednesday trading, after closing at the highest levels in more than two months, while a top Wall Street analyst issued on a bullish forecast for the group’s third quarter delivery figures.
Tesla (TSLA) , which will publish its third quarter delivery figures early next week and follow-up with a detailed earnings report later in the month, has climbed firmly higher over the past six months, but is still down from early July levels following the delay of its summer robotaxi event.
The unveiling, which has been rescheduled for Oct. 10 in Los Angeles, represents a key benchmark for Tesla CEO Elon Musk’s plans to pivot the group towards a focus on autonomous driving and away from traditional carmaking.
Profits from the former, however, will take several quarters, if not longer, to materialize, leaving investors still tracking the group’s underlying delivery and margin figures, alongside free cash flow forecasts, as its makes its expensive transition into the AI-powered future.
Piper Sandler Alexander Potter, however, remains bullish on the group’s prospects, boosting his Tesla price target by $10, to $310 per share in a note published Wednesday.
Best-ever quarter?
Potter, who carries an ‘overweight’ rating on Tesla stock, thinks the three months ending in September ‘seems likely to be Tesla’s best quarter ever, despite weak European sales.”
The group’s China sales, which have been floundering for much of the year, had a solid rebound in August, according to official figures. But activity in Europe remains notably depressed, with sales down 43.2% last month, according to European Automobile Manufacturers’ Association data.
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“The Cybertruck is supporting demand in the U.S., which contributes to our higher estimates for the target bump,” adding he sees third quarter delivery figures in the region of 459,000 units and a full-year tally of 1.75 million.
‘Unlike in other regions, it’s possible to track weekly registration data in China,” Potter said. “As a result, we have high conviction that Tesla will deliver 175,000+ units in Q3.”
“In the U.S., while intra-quarter sales figures are less accurate, thanks to Cybertruck, we think a quarter-on-quarter increase is achievable,” he added.
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Tesla is slated to publish its third quarter earnings report after the close of trading on Oct. 16, with early estimates suggesting a bottom line of 60 cents a share, down 9% from the same period last year, on revenues of around $25.57 billion.
Tesla share were marked 0.88% lower in premarket trading to indicate an opening bell price of $252.02 each.
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