Barclays maintains Tesla stock rating, raises delivery forecast above consensus

Investing.com - Barclays has maintained its Equalweight rating on Tesla (NASDAQ:TSLA) with a price target of $275.00, while significantly raising its third-quarter delivery forecast. According to InvestingPro data, Tesla currently trades at a P/E ratio of 236, suggesting a premium valuation compared to industry peers.

The investment bank now estimates Tesla will deliver approximately 465,000 vehicles in the third quarter, substantially higher than the consensus estimate of around 430,000 units. This updated forecast represents a sequential increase of about 21% from the previous quarter, while remaining relatively flat year-over-year. The stock has shown strong momentum recently, with a 14.3% gain over the past week.

Barclays expects Tesla’s inventory to decrease by 20,000 units quarter-over-quarter, bringing the company’s total inventory down to approximately 110,000-120,000 vehicles. The company maintains a gross profit margin of 17.48%, with annual revenue reaching $92.72 billion.

The firm attributes the stronger-than-expected delivery numbers to robust data points throughout the quarter and heightened U.S. sales ahead of the forthcoming expiration of the federal electric vehicle tax credit.

Despite the anticipated third-quarter delivery beat, Barclays notes investors may focus on weaker expected volume outlook for the fourth quarter and beyond, particularly in the U.S. market where EV demand could see a significant decline after the tax credit expires.

In other recent news, Tesla’s board has proposed a new 10-year compensation plan for CEO Elon Musk, which could potentially be worth up to $1 trillion. This plan ties Musk’s compensation to specific performance goals, including ambitious market capitalization milestones. Cantor Fitzgerald has reiterated its Overweight rating on Tesla, maintaining a price target of $355, noting the compensation plan’s potential impact on the company’s valuation. Similarly, Stifel has maintained its Buy rating with a $440 price target, describing the milestones as "very aggressive." TD Cowen also reiterated its Buy rating, setting a price target of $374, after gaining insights into the CEO compensation proposal. Meanwhile, Baird has kept a Neutral rating on Tesla, with a price target of $320, acknowledging the ambitious nature of the compensation package. Additionally, Tesla’s Board of Directors approved updated indemnification agreements for its directors and executive officers, ensuring full indemnity and expense advancement under Texas law. These agreements include provisions for continued coverage under Tesla’s insurance policies.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.