On Wednesday, Tesla (NASDAQ:TSLA) shares maintained a Hold rating and a $180.00 price target from TD Cowen, following the release of the electric vehicle manufacturer's third-quarter delivery numbers. The results showed a marginal 0.2% increase over the consensus gathered by investor relations, with 462.9k units delivered. However, the figures fell short of some buy-side expectations, which were closer to 470k.
Tesla's highly anticipated Cybertruck and its energy storage systems did not meet consensus expectations in terms of deliveries. According to the firm's analysis, Tesla's inventory days have remained consistent at 19 for the third quarter of 2024. Looking ahead, the company's earnings report is scheduled for October 23, 2024.
In light of the recent delivery data, TD Cowen has adjusted its estimates for Tesla, adopting a more conservative stance on the volume and average selling price (ASP) as well as margins. This revision takes into account increased promotions that could potentially impact Tesla's financial performance.
Moreover, Tesla is gearing up for its Robotaxi event, which is set to take place on October 10, 2024. The event is expected to provide insights into the company's advancements in autonomous driving technology and its implications for Tesla's future operations.
In other recent news, Tesla's third-quarter production and deliveries have drawn attention from various analyst firms. Tesla reported a total of 462,890 deliveries in the third quarter, aligning closely with Stifel's projection and consensus estimates, despite market anticipation for higher figures. The company's third-quarter production totaled 469,796 vehicles, marking a 14.4% sequential increase from the previous quarter. However, the production figure fell 8.5% short of Stifel's estimate.
Tesla's Model 3/Y series outperformed expectations with 439,975 units delivered, but the combined deliveries of Tesla's other models, including the S, X, and Cybertruck, did not meet expectations. Stifel maintained its Buy rating on Tesla, while Barclays maintained its Equalweight rating.
Tesla's energy storage segment saw a deployment of 6.9 GWh, aligning with market predictions, but marking a decline from the previous quarter's 9.4 GWh. Evercore projects third-quarter earnings per share (EPS) for Tesla in the range of 57 to 59 cents, with an expected gross margin (GM) of around 15%.
In other company developments, Tesla recently won a dismissal of a shareholder lawsuit alleging fraud over self-driving technology claims and increased its market share in Sweden to 8.5% in 2024, up from 7.8% the previous year. Wedbush reiterated its Outperform rating on Tesla shares, emphasizing the potential value of Tesla's advancements in artificial intelligence (AI) and Full Self-Driving (FSD) technology.
InvestingPro Insights
To complement the analysis of Tesla's recent delivery numbers and upcoming events, InvestingPro data offers additional context for investors. Tesla's market capitalization stands at an impressive $793.55 billion, reflecting its dominant position in the electric vehicle market. The company's P/E ratio of 63.73 indicates that investors are pricing in high growth expectations, aligning with the anticipation surrounding the Cybertruck and Robotaxi event.
InvestingPro Tips highlight that Tesla "holds more cash than debt on its balance sheet" and "cash flows can sufficiently cover interest payments," suggesting a strong financial position despite the challenges in meeting delivery expectations. This financial stability could be crucial as the company navigates potential margin pressures from increased promotions, as noted in TD Cowen's analysis.
It's worth noting that Tesla's revenue for the last twelve months reached $95.32 billion, with a modest growth of 1.37%. This aligns with the marginal increase in deliveries reported in the article. Investors seeking a more comprehensive analysis can access 17 additional InvestingPro Tips, providing a deeper understanding of Tesla's financial health and market position.
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