Electric vehicle stock Tesla (NASDAQ:TSLA) has made a name for itself in several ways, including by projecting delivery numbers and then routinely blowing those projections away. Those looking for a similar bump with third-quarter figures, however, are likely to be disappointed. Tesla slumped a little over 1% in Wednesday morning’s trading thanks to news that not even Tesla is especially sure what its third-quarter delivery figures will look like.
Analysts throughout the spectrum are left puzzling over just how many Teslas got out the door and onto people’s driveways. For instance, Tom Narayan at RBC Capital Markets was looking for 462,000 deliveries, which would beat the previous quarter by 1.9%, and would be right around what consensus was expecting. Narayan based his projections on app downloads—who downloads the Tesla app but a Tesla owner?—and vehicle registration data. Narayan wasn’t alone with projections, either; some were looking for beats, and others were looking for misses, but the point here is that consensus is not what it used to be.
Tesla CEO and general firebrand Elon Musk, during the previous earnings call, warned investors and analysts alike that third-quarter numbers might not be as brisk as everyone is likely used to. Musk pointed out that several Tesla factories were retooling this quarter and had been taken offline for upgrades. If production declines, then so too do deliveries. You can’t deliver cars that don’t exist. And looking at some of the production numbers, you can already see where Tesla is setting up for falling short. The Texas Gigafactory, an Electrek report notes, didn’t have much production at all.
Is Tesla Stock a Good Buy Right Now?
Meanwhile, analysts are still guardedly on Tesla’s side. With 11 Buy ratings, 12 Holds, and four Sells, Tesla stock is considered a Moderate Buy. Further, with an average price target of $272.71, Tesla stock also offers investors 12.46% upside potential.
