Tesla set to post strong deliveries after production spurt - analysts
Reuters
Published Sep 28, 2021 07:21AM ET
By Aniruddha Ghosh
(Reuters) - Wall Street analysts gave upbeat estimates for Tesla (NASDAQ:TSLA)'s quarterly vehicle deliveries on Tuesday, with one research group predicting it to be the best quarter for the company even as the auto sector wrestles with an unprecedented shortage of parts.
The electric-car maker had flagged an unusually high end-of-quarter wave of deliveries in a staff memo earlier this month, when Chief Executive Elon Musk asked employees to "go super hardcore" to make up for production challenges early in the third quarter.
Analysts at Piper Sandler and RBC raised their estimates to about 233,000 vehicle deliveries for the third quarter ending Sept. 30, while Credit Suisse (SIX:CSGN)'s estimate was 225,000-230,000.
The figures represent a 65%-67% jump from a year earlier. As of Monday, analysts on average expected 222,700 Tesla vehicle deliveries for the third quarter, according to market data provider Visible Alpha data.
Analysts have also said the impact of the global semiconductor shortage, which has crippled many automakers around the world, may have been smaller on Tesla.
"Tesla appears to have been less impacted by the shortage than other (automakers)," Credit Suisse's Dan Levy said in a report, citing its "quick pivot" to new microcontrollers and writing its own vehicle software.
The third quarter will likely be Tesla's "strongest" ever, Piper Sandler's Alexander Potter said, noting increasing adoption of electric vehicles in Europe and China and Tesla's rising market share. Potter has a five-star rating for estimates and recommendations on Tesla, according to Refinitiv Eikon.
Potter also raised his forecast for annual deliveries to 894,000 from 846,000. That would nearly double last year's deliveries of 499,550.
China's role as a source of global exports for Tesla is growing, with its Shanghai plant having likely exported about 55,000 vehicles in July-August, up from roughly 30,000 in the second quarter, Credit Suisse's Levy said.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.