Wall Street appears encouraged by Tesla’s (TSLA) robust third-quarter deliveries, with analysts reaffirming their “Buy” ratings on the electric vehicle (EV) maker. Morgan Stanley analyst Adam Jonas maintained his price target of $410, implying nearly 6% downside potential. Simultaneously, RBC Capital analyst Tom Narayan kept his $325 price target, suggesting 25.5% downside potential.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 55% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Tesla delivered 497,099 autos in the September quarter, significantly exceeding analysts’ estimates of 439,800 and representing a 7.4% growth over the same period last year. However, Tesla’s Q3 production totaled 447,500 vehicles, 4% below the consensus estimate of 468,500 units. In contrast, the company’s energy storage system deployments reached 12.5 GWh (gigawatt-hours), surpassing the consensus expectation of 10.94 GWh by 14%.
Jonas Highlights Pull-Forward in Demand
Jonas noted that Tesla’s Q3 deliveries beat the sell-side consensus estimate of 443,000 by 12%, aligning with the upper end of buy-side expectations of 450,000 to 500,000.
He attributed this delivery strength to a likely pull-forward in demand ahead of the expiration of EV consumer tax credits. Importantly, this quarter also marked Tesla’s first year-over-year delivery growth in 2025.
Narayan Points to Chinese OEMs Softening
Narayan noted that he had expected Tesla to report strong vehicle deliveries in the third quarter, but the EV giant actually delivered more than expected, at about 497,000 cars.
He highlighted that the recent expiration of the U.S. EV tax credit contributed to the strong results. Additionally, he cited the “softening performance by domestic Chinese original equipment manufacturers (OEMs)” as another factor helping Tesla gain market share.
Tesla’s Future Performance Remains in Focus
Looking ahead, Tesla’s ability to sustain strong delivery growth while expanding its energy storage deployments will be key to maintaining investor confidence. As the company navigates evolving market dynamics and regulatory changes, its performance in upcoming quarters will be closely watched by both analysts and investors.
Is Tesla Stock a Buy, Hold, or Sell?
Despite the outperformance, analysts remain divided on Tesla’s long-term outlook. On TipRanks, TSLA stock has a Hold consensus rating based on 14 Buys, 12 Holds, and eight Sell ratings. The average Tesla price target of $345.28 implies 20.8% downside potential from current levels. Year-to-date, TSLA stock has gained nearly 8%.
