Tesla shares edged higher in early Wednesday trading, after closing at the highest levels in more than two months, while a top Wall Street analyst issued a bullish forecast for the group's third-quarter delivery figures.
Tesla (TSLA) , which is scheduled to report 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 it rescheduled for Oct. 10 in Los Angeles, represents a key benchmark for Tesla CEO Elon Musk's plans to pivot the group toward 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 profit-margin figures, alongside free-cash-flow forecasts, as the Austin group 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 a share in a note published Wednesday.
Tesla's Q3 its best-ever quarter?
Potter, who carries an 'overweight' rating on Tesla stock, says the three months ending in September seem "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, rebounded solidly 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," Potter says, adding that 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 trading closes 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 shares were marked 0.4% higher in late-morning trading to change hands at $254.89 each.
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