2024 Tesla Stock Prediction Is Still Positive, However It Is Disappointing EV Delivery Report.
Oct 03, 2023
Investors didn’t anticipate strong sales figures, but these numbers still surprised investors that helped 2024 Tesla stock prediction remain positive.
A total of 435,059 Tesla (TSLA) cars were delivered during the third quarter, while Wall Street had expected closer to 455,000 — according to the company’s calculations based on 25 large brokers’ calls. There had been all kinds of numbers circulating before the result. Based on FactSet, analysts were expecting 473,000 units a few weeks ago, while the number on Sunday was 461,000.
This delivery figure is based on the fact that only 430,488 new units were produced by the company.
Stocks of Tesla fell 3.8% in premarket trading on Monday to $240.62 but recovered at midday to $251.30. As of late trading, shares have fluctuated around break even. S&P 500 index was down 0.2%, while Nasdaq Composite shares were up 0.4%.
The weak results were expected by investors, which is why the market reacted relatively neutrally.
At the end of each quarter, Tesla’s estimates typically decline by 1% to 2%. Compared to the second quarter, the third quarter estimates ranged about twice as wide.
Yet Tesla’s delivery figure fell short of what FactSet predicted, and it was worse than Wall Street had anticipated. The number of vehicles delivered fell by about 7% after the record 2nd quarter deliveries of 466,140 vehicles.
Many analysts attribute the drop to Tesla’s planned factory upgrades, which are causing plant shutdowns. European and Chinese customers are about to receive a refreshed Model 3.
As a result, the stock was at least partially affected before the delivery figure was revealed. In its most recent earnings report, management discussed factory downtime in the third quarter that resulted in the stock falling about 14% into Monday’s trading. During that period, the S&P 500 dropped about 6%, and the Nasdaq dropped about 8%.
Despite the weak third-quarter numbers, Canaccord analyst George Gianarikas pointed to the plant downtime as a reason for his optimism. According to the analyst’s report, Tesla appears to be doing well in spite of a weak auto market and recent price cuts, particularly with new products scheduled to be released in 2023, which include a new Model 3 and Cybertruck, as well as a slightly updated Model Y that was announced in China this weekend.
Shares of Tesla are rated Buy by him, with a target price of $293.
Despite Wall Street‘s expectations, more volume was lost as a result of plant downtime. There was not enough production to cover delivery estimates. A total of 430,000 Tesla vehicles were produced in the third quarter, a decrease of about 49,000 units from the second quarter when 479,700 were produced.
The good news is that sales outpaced production. This is the first time since 2022 that inventories have shrunk and a chance for good 2024 Tesla stocks.
The management is also sticking to its forecast of delivering about 1.8 million vehicles in 2023. As a result, there needs to be 475,000 vehicles shipped in the fourth quarter, while the Wall Street analysts are expecting this number to be 490,000.