FYI: Tesla’s upcoming Q3 vehicle delivery report and Robotaxi event could potentially drive TSLA stock higher, suggests Baird analyst.
Tesla stock (NASDAQ: TSLA) has been gaining traction recently, and there may be more room for growth in the near future. According to Baird analyst Ben Kallo, who has maintained his “Outperform” rating and $280 price target for TSLA shares, several upcoming milestones could further boost the electric vehicle maker’s stock.
Positive Momentum Ahead for Tesla
In a note to clients, Kallo highlighted that Tesla’s third-quarter 2024 vehicle delivery report, set to be released next week, could positively impact the stock. Additionally, the highly-anticipated Robotaxi event on October 10, 2024, is expected to generate significant investor interest.
“The near-term setup is favorable in our view, and we are buyers into both the delivery release (estimated Oct. 2) and Robotaxi event (Oct. 10),” Kallo stated. He speculated that even if Tesla’s delivery numbers are in line with or slightly below expectations, the upcoming Robotaxi event could still act as a significant catalyst.
Upcoming Events and Potential Gains
The analyst mentioned that Tesla is expected to introduce a lower-cost electric vehicle along with its Robotaxi on October 10. This could positively influence TSLA stock by improving volume estimates for 2025.
“We see the launch of a lower-priced vehicle as a positive for volume estimates in 2025; however, we note that switching production to enable a new vehicle would likely come with some factory downtime, which may create variability in deliveries,” Kallo highlighted.
Robust Q3 Expectations
Kallo pointed out that Tesla’s Q3 numbers appear to be trending positively based on new vehicle registration data from China and the lack of any factory downtime this quarter. He expects Tesla to deliver 480,000 vehicles this Q3, surpassing the FactSet consensus of 462,000 vehicles.
Further, Kallo anticipates that Tesla will deliver 1.83 million vehicles in 2024, which is also above FactSet’s consensus of 1.78 million. All these elements combined indicate a favorable outlook for TSLA stock.
Market Performance
Tesla shares have surged by 35.7% as of Tuesday, significantly outpacing the Global X Autonomous & Electric Vehicles ETF, which dropped by 3.2%, and the S&P 500, which rose by 4.8% in the same period. This divergence showcases Tesla’s strong market performance.
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William Kouch, Editor of Automotive.fyi
