Investors at the time had mixed opinions. Tesla (NASDAQ:TSLA) The company announced the number of units delivered for the third quarter. The company produced 430,488 vehicles and delivered 435,059 vehicles during the quarter, slightly lower than market expectations of 455,000 vehicles. For comparison, deliveries in the second quarter reached 466,140 units, easily beating expectations of 445,000 units. However, EV leaders stuck to their full-year targets.
This includes 419,100 Model 3/Y deliveries (441.1k Street units) and 16,000 Model S/X deliveries (18.5k Street units).
Tesla blamed lackluster facilities at its Shanghai and Austin facilities for longer-than-expected downtime, but CEO Elon Musk said on a second-quarter call that It wasn’t entirely unexpected, as it warned of a summer closure needed for factory upgrades.
Daniel Ives of Wedbush, a five-star analyst ranked in the top 2% of stock experts on the Street, says the fourth-quarter number will likely be around 20,000 units due to the third-quarter delivery shortfall. It is possible that it may be included. He interprets the factory upgrades as part of Tesla’s broader expansion strategy as the company prepares to increase production, scale and launch new models next year.
“We believe Tesla is now entering the company’s next phase of growth on a global scale, as price reductions in the rearview mirror lead to price stability going forward,” the 5-star analyst continued. . China is at the forefront of the Model 3 refresh, with Cybertruck production expected to begin around Halloween. ”
Tesla still expects to deliver 1.8 million cars this year, but will need strong fourth quarter results to reach that number. “Even considering the shutdown without wearing rose-colored glasses, bulls remain disappointed and Tesla clearly underperformed Street expectations,” Ives said. “There are better days ahead in Q4 and 2024. I expect it to come,” he added, before reflecting on investor sentiment.
Meanwhile, Ives maintained an Outperform (i.e. Buy) rating on Tesla stock, in line with his $350 price target, suggesting the stock could rise 36% over the next 12 months. (Click here to see Ives’ track record)
Tesla has always elicited a wide range of opinions on Wall Street, and that continues to be the case today. The stock asserts a Moderate Buy consensus rating based on a combination of 12 Buys, 13 Holds, and 4 Sells. Considering the current average price target of $264.56, the stock has room for an upside of just 2.6% from current levels. (look Tesla stock price prediction)
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Disclaimer: The opinions expressed in this article are solely those of the featured analysts. Content is for informational purposes only. It is very important to perform your own analysis before making any investment.