FYI: Piper Sandler Analyst Projects Tesla to Hit Nearly 459k Deliveries in Q3 2024
Tesla Inc. (NASDAQ: TSLA) has recently garnered a renewed endorsement from Piper Sandler’s analyst Alexander Potter. Potter upgraded the price target for Tesla’s stock from $300 to $310 per share, affirming an “Overweight” rating for the prominent electric vehicle manufacturer.
Upwards Revision Based on Strong Delivery Projections
Piper Sandler’s upward price adjustment stems significantly from increased delivery estimates for the third quarter and the full fiscal year 2024. According to Investing.com, the firm is bullish on Tesla’s vehicle deliveries for Q3 2024, forecasting nearly 459,000 units. This projection represents a 3.3% growth from the previous quarter and a 5.4% increase compared to the same period last year.
Impressive Momentum in Tesla China
Notably, Tesla’s performance in China—a crucial market—contributes heavily to these optimistic estimates. Tesla China appears to be on the verge of a record-breaking quarter for Q3 2024, with the company’s registrations in the region up by 19.9% quarter-over-quarter and 18.5% year-over-year as of the week ending September 22. Additionally, year-to-date registrations have improved by 2.0% against 2023, despite lagging for much of 2024.
Annual Vehicle Delivery Estimates
Potter also revised annual vehicle delivery estimates for Tesla, now anticipating about 1.75 million units for the year—marking an increase of approximately 23,500 vehicles from prior figures.
Industry-wide Optimism
Piper Sandler is not alone in its positive outlook. Wolfe Research is forecasting Tesla to deliver around 460,000 vehicles in Q3 2024, while Baird’s analyst Ben Kallo is even more optimistic, estimating deliveries could reach as high as 480,000 units for the quarter.
Conclusion
As Tesla continues to navigate the competitive terrain of the electric vehicle market, Piper Sandler’s revised projections and the concurrent optimism from other research firms provide a significant boost to investor confidence. With strong momentum in critical markets like China, Tesla seems poised to meet and possibly exceed these ambitious delivery targets.
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Authored by William Kouch, Editor of Automotive.fyi
