On Wednesday, Truist Securities adjusted its price target for Tesla (NASDAQ:TSLA), increasing it to $236 from the previous $215. The firm maintained its Hold rating on the electric vehicle manufacturer's shares. This change comes following Tesla's announcement of its third-quarter delivery numbers, which were reported to be approximately in line with market expectations.
Tesla revealed that it delivered around 463,000 vehicles during the third quarter of 2024, aligning with Wall Street forecasts but falling slightly short of Truist Securities' projections and, presumably, below what investors had hoped for. Despite the delivery figures being marginally lower than anticipated, the adjustment in the price target was influenced by a combination of factors.
The firm's analysts noted that the earnings per share (EPS) estimates were altered only slightly due to a balance between modestly higher average selling prices and foreign exchange benefits, which mitigated the impact of the lower-than-expected delivery numbers. The new price target of $236 is derived from a discounted cash flow (DCF) analysis, which now factors in slightly reduced interest rates.
The updated valuation reflects the latest financial and operational data from Tesla, including the company's recent performance and market conditions. Truist Securities' decision to maintain a Hold rating indicates that, while recognizing Tesla's consistent delivery performance, the firm advises investors to maintain their current positions without increasing their holdings.
Investors and market watchers will likely continue to monitor Tesla's stock performance, as well as the company's ability to meet delivery expectations and navigate through the dynamic automotive market. The new price target is now set as a benchmark for Tesla's potential future stock performance.
In other recent news, Tesla's Q3 delivery numbers showed a marginal increase of 0.2% over the consensus, reaching a total of 462.9k units. However, these figures were below some expectations, which were closer to 470k. Bernstein SocGen Group maintained its Underperform rating on the company's shares, expressing skepticism about Tesla's growth prospects, particularly in terms of unit sales for the current year. TD Cowen, maintaining a Hold rating, revised its estimates for Tesla, adopting a cautious stance on volume and average selling price.
Tesla's energy storage segment deployed 6.9 GWh, which met market predictions but marked a decline from the previous quarter's 9.4 GWh. Despite this, Evercore projects earnings per share for Tesla in the range of 57 to 59 cents.
Tesla is also preparing for its Robotaxi event, expected to provide insights into advancements in autonomous driving technology. Barclays (LON:BARC) maintained an Equalweight rating on Tesla shares, attributing the delivery miss to weaker performance in the Model S, Model X, and Cybertruck lines.
Meanwhile, Tesla recently won a dismissal of a shareholder lawsuit alleging fraud over self-driving technology claims and increased its market share in Sweden to 8.5% in 2024, up from 7.8% the previous year. These are the recent developments in Tesla's journey.
InvestingPro Insights
Tesla's financial metrics and market performance offer additional context to Truist Securities' recent price target adjustment. According to InvestingPro data, Tesla's market capitalization stands at an impressive $794.03 billion, reflecting its dominant position in the electric vehicle market. The company's P/E ratio of 63.97 indicates that investors are willing to pay a premium for Tesla's growth potential, aligning with the "InvestingPro Tip" that Tesla is trading at a high earnings multiple.
Despite the high valuation, Tesla's financial health appears robust. An InvestingPro Tip highlights that the company holds more cash than debt on its balance sheet, suggesting financial stability. This is particularly important given the capital-intensive nature of the automotive industry and Tesla's ongoing expansion efforts.
However, investors should note that Tesla's revenue growth has slowed, with a modest 1.37% increase in the last twelve months. This may explain why Truist Securities maintained its Hold rating, as the company faces challenges in maintaining its high growth rates.
For those seeking a more comprehensive analysis, InvestingPro offers 19 additional tips on Tesla, providing investors with a deeper understanding of the company's financial position and market outlook.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.