Truist Analysts Raise Tesla Price Target
Investing.com — Truist analysts have increased their price target for Tesla (NASDAQ:TSLA), rated Hold, from $215 to $236. This increase is attributed to lower interest rates.
The adjustment follows Tesla’s third-quarter delivery report, which met expectations with 463,000 units delivered, reflecting a 6.4% year-over-year increase.
Truist noted that although delivery figures aligned with market expectations, they were likely below Buyside hopes. In contrast, Tesla’s Q3 production surpassed forecasts with 469,800 units produced, indicating an 8% increase over analysts’ projections and 9% from last year.
The alignment of delivery and production figures is viewed positively by investors, suggesting a reduced gap between these metrics. Moreover, Truist highlighted that Tesla’s average selling prices (ASPs) remained stable or slightly increased in Q3 compared to the previous quarter. The analysts forecasted flat ASPs for that quarter but anticipate potential downward pricing pressure in the long term as Tesla aims to stimulate demand.
Another factor influencing the price target adjustment is Tesla’s upcoming “Robotaxi” event on October 10. Named “We, Robot”, the event is expected to provide deeper insights into Tesla’s autonomous driving ambitions, potentially affecting the company’s growth trajectory significantly.
Truist emphasized that despite current deliveries and upcoming earnings due on October 23, the focus will be on the planned 10/10 Robotaxi event as a key catalyst for the stock.
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