Four Wall Street Investment Firms Raise Third Quarter India Shipment Forecast
As Tesla is expected to record its highest-ever quarterly performance in China, Wall Street has been raising its estimates for Tesla's third-quarter vehicle deliveries one after another.
According to Bloomberg on the 25th (local time), at least four Wall Street investment firms have raised their estimates for Tesla's third-quarter vehicle deliveries, which will be announced on the 2nd of next week.
Barclays raised its estimate for Tesla's third-quarter vehicle deliveries from 462,000 units to 470,000 units. RBC Capital Markets raised its estimate from 454,000 units to 460,000 units, and Baird raised its estimate from 435,000 units to 480,000 units. UBS and Piper Sandler forecasted 470,000 units and 459,000 units respectively. The previous third-quarter vehicle delivery estimate compiled by Bloomberg was 462,000 units.
Wall Street's upward revision of Tesla's third-quarter vehicle delivery estimates is due to signs of recovering demand for Tesla models in China, the world's largest electric vehicle market. According to the internet media TeslaRati, sales of popular vehicles such as the Tesla Model Y surged in China last month.
Accordingly, if Tesla announces third-quarter vehicle deliveries exceeding market expectations, it is expected to play a significant role in offsetting the stock price weakness seen this year. Tesla's stock price has only risen 3.4% so far this year, far below the S&P 500 index's 20% increase during the same period. This is due to a slowdown in the growth rate of electric vehicle demand and reduced profitability in China, Tesla's core sales market, caused by the rise of Chinese electric vehicle companies such as BYD.
Dan Levy, an analyst at Barclays covering Tesla, said, "The strength in the Chinese market is appearing at a very appropriate time and will help offset the continued weakness in the U.S. and Europe." Alexander Potter, an analyst at Piper Sandler, also said, "Tesla will have its best quarter ever in China in the third quarter," adding, "Although European sales are sluggish, Cybertruck deliveries in the U.S. are supporting demand."
In addition to announcing third-quarter vehicle delivery results, Tesla's plan to hold the 'Robotaxi Day' event, which will showcase its autonomous driving technology on the 10th of next month, is also raising investor expectations. This event was originally scheduled to be held in August.
Baird maintained its 'Outperform' rating and $280 target price for Tesla. Baird analyst Ben Kallo said, "Given that deliveries are being tracked to meet or exceed current consensus, Tesla's short-term investment environment is attractive."
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