Oct 02, 2023

Tesla is set to deliver its much-anticipated delivery and production numbers ahead of Monday’s session.

TSLA Daily Chart

TSLA: Daily Chart

The price of TSLA trades at $250.22 and has support at the $235.50 level. The upside target for TSLA is $278.88.

Tesla will report its third-quarter deliveries, with some analysts expecting a lower number due to factory shutdowns. The company has had downtime at its factories in Europe and China as it upgrades equipment for the upgraded Model 3 and the coming Cybertruck.

Analysts at Wedbush Securities said that the extended shutdowns could shave 20k vehicles from this quarter’s deliveries but could lead to a stronger Q4.

However, analysts at Deutsche Bank cut their price target for the EV maker last week. Deutsche cut its 12-month stock price target to $285, citing headwinds to earnings growth in 2024. The bank also lowered its estimates for total vehicle deliveries this quarter by 15,000.

The bank said Tesla would report deliveries of 440,000 units in the third quarter, lower than estimates of 455,000 units. That could result in lower quarterly revenue than previous estimates of $23.3 billion.

“Looking at 2024, however, we see considerable downside risk to earnings expectations due to a much lower volume outlook than the market believes,” the analysts wrote. They added that Tesla suggested in an investor meeting that it was no longer planning to ramp up production to 10,000 units per week next year in the US and Germany.

Tesla is also in the news with the UAW strike looming in the United States. The United Auto Workers union wants to strike in a move that could cripple Tesla’s big US rivals, Ford and GM. Tesla is the only major American automaker that doesn’t employ UAW workers.

Weaker US stocks could weigh on the price going into the Monday session, so a weak delivery number would hurt Tesla. However, a stronger number could help shake off the recent slowdown fears.

Read More

Record Sales at ASML Fuels a Global Stock Rally
EURUSD Heads for Support Ahead of ECB Rate Decision
Tesla Stock Looks to Earnings for Reversal
Markets Anticipate Chinese Government Intervention After Slump
USDJPY Awaits the Latest Bank of Japan Interest Rate Decision
BoJ Focuses On Latest USD/JPY Rally