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Tesla 3Q Delivery Estimates Cut by Analysts, Shares Rise in Pre-market Trading


Shares of Tesla (NASDAQ:TSLA) are on the rise in pre-market trading. Defying the consensus of analysts from three different firms who have cut their estimates for the company’s 3Q deliveries today.

Citi’s Neutral Rating and Lowered Target

Citi has reiterated its Neutral rating and adjusted its price target to $278 for the electric automaker. Just ahead of the release of Tesla’s 3Q delivery report. Analysts at Citi have scaled down their delivery projections for the third quarter, reducing them to 450k from 468.5k. This reduction in projected deliveries has also impacted their EPS estimate, which has now dropped from $0.81 to $0.75.

The revised estimates take into account recent weekly data from China and Tesla’s global registration statistics. While remaining positive about Tesla’s strong global position in premium electric vehicles (EVs), Citi analysts express skepticism about the company’s approach to Full Self-Driving/Autonomous Vehicles (FSD/AV), considering it a pivotal factor in assessing risk versus reward.

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Piper Sandler’s Revised Projections

Piper Sandler has also trimmed its delivery estimates for Tesla’s 3Q, lowering them from 515k+ to 445k units. They attribute this adjustment to downtime in Tesla’s facilities in Shanghai and Austin, which was necessary for the launch of the updated Model 3 and Cybertruck.

Despite this setback, Piper Sandler maintains its Overweight rating and a $300 price target for Tesla stock. Analysts at Piper Sandler believe that the intentional shutdowns should not be interpreted negatively and express doubt that TSLA will experience a significant sell-off if 3Q results fall short of expectations.

Barclays’ Adjusted Ratings and Target

Barclays has reaffirmed its Equal-weight rating on Tesla and revised its 3Q delivery estimates downward, matching Citi’s projection of 450k deliveries instead of the previous 468.5k. The delivery estimate adjustment has also prompted Barclays to reduce its EPS estimate for the quarter from $0.81 to $0.75.

Tesla is scheduled to announce its 3Q delivery results on Monday, October 2nd.

Despite the lowered delivery estimates, Tesla’s shares have surged by 1.52% in pre-market trading on Friday morning.

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Disclaimer: Please note that this article serves solely for informational purposes and should not be construed as financial advice. We strongly advise readers to conduct thorough research and consult with financial professionals before making any investment decisions.


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