Tesla TSLA will show strong deliveries in Q4 and in all 2023 despite production shutdowns in Q3, says a Global Equities Research analyst. The firm reiterated a $350 per share price target and an Outperform rating.
In the third quarter, Tesla factories around the world were temporarily closed to modernize production. Elon Musk warned about this during the Q2 2023 Earnings Call. Some factories were preparing to produce the updated Model 3, while others were expanding and improving production capacity. Ultimately, this left a negative impact on some institutional investors, who adjusted their Q3 delivery forecasts downward.
However, despite the negative sentiment from some analysts on Wall Street, Global Equities Research has made its own assessment. Analyst Trip Chowdhry believes Tesla is on track for strong deliveries in the fourth quarter, despite temporary shutdowns in Q3. The analyst noted that the closure of the Fremont factory in the third quarter was shorter than expected. He said he expected a “monstrous” fourth quarter from the manufacturer. Chowdhry also reiterated an Outperform rating and a $350 price target for Tesla.
The company aims to deliver 1.8 million vehicles in 2023. Musk himself even hinted that this number could reach 2 million units. Delivery performance was strong in Q1 and Q2, already reaching 889,015 units. Since production and deliveries are always significantly higher in the second half of the year than at the beginning of the year, it seems likely that the company could reach around 2 million vehicles for the full 2023.
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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.