Investors eagerly await the release of Tesla’s third-quarter delivery figures, which are expected to be announced on Monday. The anticipation surrounding these figures is immense, with estimates spanning a wide range.
According to Canaccord analyst George Gianarikas, estimates for this quarter have an unusually high standard deviation. On Thursday evening, he noted that Wall Street predicts Tesla will deliver approximately 462,000 vehicles in the third quarter. However, FactSet reports that the range of predictions varies from about 440,000 units to 510,000 units. This 70,000 unit spread is twice as large as the one seen in the second quarter when Tesla delivered around 466,000 units.
The anticipated decline in deliveries is attributed to several factors mentioned by the analyst. These factors include the timing of new product introductions, general weakness in the auto market, and comments made by Mr. Musk during the last quarter’s earnings call. The management also highlighted that Tesla factories were undergoing planned downtime to upgrade equipment during the quarterly conference call.
As Tesla prepares for its third-quarter delivery estimates, there seems to be mixed opinions among analysts and investors. While some experts remain optimistic about the company’s future, others express a sense of caution.
Analysts Remain Bullish, but with Some Concerns
Gianarikas, one of the optimistic voices, rates Tesla shares as a Buy and has set a price target of $293 for the stock. Despite potential worries about the delivery numbers for this quarter, Gianarikas advises investors not to fixate on them. Instead, he emphasizes the exciting new products on the horizon, such as the highly anticipated Cybertruck. Additionally, the upgraded Model 3 deliveries are set to commence soon, further bolstering the company’s prospects. Gianarikas also highlights the potential long-term benefits of the recent UAW strike, as it may help Tesla improve its cost structure relative to its competitors. Notably, Tesla stands out as a company without a union. Overall, Gianarikas remains confident, asserting that “lots of good stuff is happening at Tesla.”
Wall Street Exhibits Cautious Optimism
Despite Gianarikas’ positive outlook, the majority of Wall Street analysts are slightly more concerned. Currently, only 41% of those covering Tesla stock rate it as a Buy, which stands lower than the average Buy-rating ratio for stocks in the S&P 500, which hovers around 55%. Comparatively, a year ago, approximately 64% of analysts were bullish on Tesla’s prospects. This shift suggests a growing sense of apprehension among analysts regarding the company’s current situation.
Investors Show Signs of Nervousness
Investors themselves also appear somewhat nervous about Tesla’s performance. In the past two weeks alone, Tesla shares have seen a decline of approximately 12%. This drop can likely be attributed to the fluctuating third-quarter delivery estimates, which have decreased from just above 470,000 units to slightly above 460,000 units. The uncertainty surrounding these numbers has instilled a sense of hesitation among investors, causing some to question the stock’s short-term prospects.
The Complex Nature of Stock Market Reactions
Attempting to predict stock market reactions based on any singular data point is always a challenging task. Investors and traders must consider a variety of factors, including expectations, recent stock performance, and the actual reported figures. In the case of Tesla’s third-quarter delivery estimates, determining the market’s reaction becomes even more complicated than usual.
Despite the mixed sentiments from analysts and investors, Tesla continues to march forward with its innovative and groundbreaking approach. The company’s ability to deliver new and exciting products, combined with potential improvements in cost structure, offers promising prospects for the future. As Tesla moves closer to unveiling its third-quarter results, all eyes remain on this electric vehicle pioneer.
Tesla Stock Rises in Premarket Trading
Tesla’s stock is showing promising growth in premarket trading on Friday. It has reached a substantial increase of 3.5%. In comparison, the S&P 500 and Nasdaq Composite futures have experienced rises of 0.7% and 1%, respectively.
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