Tesla price target lowered by $15 at Deutsche Bank, here’s why

Deutsche Bank lowered the firm’s price target on Tesla to $260 from $275 and keeps a Buy rating on the shares. The analyst expects Tesla’s Q4 deliveries to meet Street expectations but still sees “material downside risk” to 2024 consensus estimates due to limited volume growth next year. For Q4, the firm’s deliveries estimate remains 476,000 units, allowing Tesla to reach 1.8M units for the year as it guided. The larger risk is downside to expectations for 2024 on both growth and earnings, as Tesla “candidly admitted” the company is now in an intermediate lower-growth period, the analyst tells investors in a research note. Deutsche says that after the very strong growth of Model 3 and Y vehicles over the past five, the company is getting closer to reaching full volume potential before the launch of its next-generation platform.