Deutsche Bank reiterated a Buy rating and $400 price target on Tesla (NASDAQ: TSLA) ahead of its Q3 2022 delivery and production report. Delivery data should be available this weekend and earnings data will be available later in October.
Deutsche Bank maintained its Q3 Tesla delivery estimate at 367,000 units, according to investing.com. This reflects a strong recovery from a three-week production shutdown in the second quarter due to COVID and logistical issues at Giga Shanghai, as well as increased production at Giga Berlin and Giga Texas. Q3 revenue estimates remained unchanged at $22.9 billion, while earnings-per-share estimates rose from $1.11 to $1.14.
Analysts also assessed the impact of Tesla AI Day, which will take place on Friday, September 30. Deutsche Bank believes that investors and the broader Tesla fan community will be looking for updates on FSD beta, robotaxis, Optimus, and other AI-related programs. The firm expects Tesla to provide an update on its ramp-up efforts at Giga Berlin and Giga Texas, as well as the latest mass production status of its 4680 cells. In addition, updates are expected on Cybertruck, which is scheduled to start production in mid-2023, and on RoboTaxi.
Deutsche Bank also expects investors to seek more clarity on Tesla's qualifications for a $7,500 electric vehicle consumer credit and the size of the battery credit.
The analysts wrote in a note, “We continue to view Tesla as one of the most attractive stories in the autos sector thanks to its pricing power, superior cost structure, strong execution, and having secured supply and now establishing more meaningful capacity to support considerable growth.”
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.