Tesla’s Disappointing 3rd Quarter Production Results: What it Means for Investors and Analyst Recommendations

2023-10-03 16:30:58

Tesla’s production disappointed analysts’ expectations in the third quarter. (Photo: 123RF)

What to do with Tesla, Northland Power and Power Corporation stocks? Here are some analyst recommendations likely to move prices soon. Note: the author may have an opinion completely different from that expressed.

Tesla (TSLA, US$251.60): deliveries lower than expected in the 3rd quarter

Electric car manufacturer Tesla announced Monday morning that the number of vehicles delivered during the 3rd quarter was lower than expected due to downtime at factories in Shanghai and Austin.

While taking this downtime into account, Daniel Ives, an analyst at Wedbush, an investment bank in Los Angeles, believes that we should make no mistake and that Tesla has indeed missed analysts’ forecasts and disappointed Investors.

Tesla announces deliveries of 435,100 vehicles for the last quarter while the consensus expected 455,000. Deliveries of the Model 3/Y were 419,100 vehicles while analysts forecast 441,100.

However, the analyst predicts better days for the 4th quarter and in 2024. The company is ready to increase its production and launch new models during the next year, according to him.

Thanks to price cuts which ensure stability in demand, the analyst believes that Tesla is entering a new stage of its growth. It continues to target deliveries of 1.8 million vehicles this year thanks to a strong 4th quarter.

Q3 earnings will be disclosed on October 18. The analyst believes that margins will be at a low, but that they will improve from this level.

Consequently, it maintains its “outperform” recommendation and its target price of US$350

Northland Power (NPI, $21.40): good upside potential given large offshore wind projects

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