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Investing.com - Benchmark has reiterated its Buy rating and $475.00 price target on Tesla (NASDAQ:TSLA), currently trading at $440.40 with a market capitalization of $1.46 trillion, ahead of the electric vehicle maker’s third-quarter delivery report expected Thursday. According to InvestingPro analysis, Tesla is currently trading above its Fair Value.
The research firm projects Tesla will report approximately 442,000 vehicle deliveries for the quarter, slightly below the FactSet consensus of around 448,000, with some analysts forecasting deliveries as high as the mid-460,000s.
The anticipated delivery figure would represent a significant sequential increase from the second quarter’s approximately 384,000 deliveries, despite what Benchmark describes as a "choppy incentive/pricing backdrop."
Benchmark noted that Tesla stock has risen sharply heading into the delivery report, gaining approximately 28-32% in September alone, which "raises the bar for an upside surprise to translate into further near-term strength." InvestingPro data reveals multiple positive indicators for Tesla, with 18+ additional exclusive insights available to subscribers.
The firm warned of potential volatility in the fourth quarter as "certain EV incentives/credits tighten or roll off in select markets," potentially creating demand challenges, though it views these issues as "transitory, not thesis-breaking."
In other recent news, Tesla’s third-quarter vehicle deliveries are anticipated to grow, supported by the impending end of the $7,500 EV tax credit. Cantor Fitzgerald has reiterated its Overweight rating on Tesla, with a price target of $355, as they expect a year-on-year increase in deliveries. Deutsche Bank has also raised its price target for Tesla to $435, maintaining a Buy rating, and forecasts 461,500 vehicle deliveries for the third quarter, surpassing consensus expectations. Piper Sandler has further increased its price target for Tesla to $500 following a trip to China to understand the competitive landscape better.
In other developments, Tesla has urged the Trump administration to maintain vehicle emissions standards, emphasizing the health threat posed by greenhouse gas emissions. Meanwhile, Tesla’s market presence in the European Union has faced challenges, with Chinese competitor BYD surpassing Tesla in sales for the second consecutive month. BYD’s EU sales have grown significantly, while Tesla’s sales have decreased by 36.6%, reducing its market share. These recent developments highlight the dynamic and competitive environment in which Tesla operates.
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