Tesla’s (NASDAQ:TSLA) Q3 Deliveries Fell Short, Now What?
Stock Analysis & Ideas

Tesla’s (NASDAQ:TSLA) Q3 Deliveries Fell Short, Now What?

Story Highlights

Tesla’s Q3 vehicle deliveries came below Street’s estimates. TSLA stock could remain under pressure as Q3 deliveries disappoint.

Tesla (NASDAQ:TSLA), as expected, announced record deliveries of 343,830 vehicles in Q3. However, this fell short of Street’s estimates of about 364,000. Wedbush analyst Daniel Ives believes this shortfall will not sit well with Street. This may hurt TSLA stock, which is down about 25% year-to-date.

Ives stated, “While the reasoning (in the PR) from Tesla makes sense on paper, the Street will not be convinced and lingering worries about demand issues will persist until we hear around year-end unit guidance on Tesla’s conference call October 19th.” 

Notably, Tesla highlighted that the third quarter faced delivery challenges at reasonable costs. Ives views the Q3 delivery shortfall as “more of a logistical speed bump rather than the start of a softer delivery trajectory into 4Q/2023.”

Despite the missed deliveries, Ives continues to be bullish on TSLA stock with a price target of $360 (35.7% upside potential). 

Is Tesla a Buy or Sell Right Now?

Supply-chain and logistics issues and a higher input cost environment are taking a toll on TSLA and other EV (electric vehicle) manufacturers. TipRanks’ data reveals that Street is cautiously optimistic about TSLA stock. It sports a Moderate Buy consensus rating based on 18 Buy, six Hold, and five Sell recommendations. 

Further, TSLA’s average price target of $311.19 implies 17.3% upside potential. 

It’s worth mentioning that TSLA has negative signals from hedge funds and insiders, with both selling the stock last quarter. Tesla stock commands a Neutral Smart Score of 5 out 10 on TipRanks.

Bottom Line 

The higher commodity costs and supply constraints could pose production and margin headwinds for TSLA and other automakers in the short term. However, secular tailwinds like policy support, demand, and innovation provide a solid foundation for long-term growth. 

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