NHL signs licensing deals with prediction-market startups Kalshi and Polymarket - WSJ
Investing.com - Deutsche Bank has raised its price target on Tesla (NASDAQ:TSLA) to $435.00 from $345.00 while maintaining a Buy rating ahead of the company’s third-quarter delivery report expected next week. The stock, currently trading at $423.39, has delivered impressive returns with a 66.54% gain over the past year, though InvestingPro analysis indicates the stock may be overvalued at current levels.
The bank forecasts Tesla will deliver 461,500 vehicles in the third quarter, approximately flat year-over-year but up 20% quarter-over-quarter, significantly exceeding the consensus expectation of 433,000 units. This growth is attributed to the launch of Model Y L in China and pre-buying in the United States ahead of expiring electric vehicle incentives. With trailing twelve-month revenue of $92.72 billion and a gross margin of 17.48%, Tesla continues to demonstrate its market leadership despite margin pressures.
Deutsche Bank expects 20% growth in both China and North America for the quarter, while projecting some decline in European deliveries due to increasing competition and branding challenges. Chinese registration data through the third week of September is tracking around 141,000 units versus the bank’s quarterly estimate of 159,000.
For the full year, Deutsche Bank believes Tesla can achieve close to the consensus forecast of 1.6 million deliveries, despite anticipating a significant drop in U.S. sales during the fourth quarter after incentives end. The bank models 409,000 deliveries for the fourth quarter.
The price target increase reflects Deutsche Bank’s view that CEO Elon Musk’s focus on Tesla’s robotaxi and Optimus humanoid robot initiatives, along with his recent compensation package, have "removed a large overhang on the stock" and will allow Tesla to benefit from its position as a leader in embodied artificial intelligence. InvestingPro subscribers can access 18 additional key insights about Tesla’s financial health, which has received a "GOOD" overall rating from our comprehensive analysis system.
In other recent news, Tesla has been in the spotlight for several developments. The company has urged the Trump administration to maintain current vehicle emissions standards, emphasizing the importance of controlling greenhouse gas emissions. Meanwhile, in the European market, Tesla faced a setback as Chinese competitor BYD surpassed its sales for the second consecutive month, with BYD’s sales growing by 201.3% year-on-year. Tesla’s market share in the EU fell to 1.2% from 2% a year ago, according to data from the European auto lobby ACEA.
In terms of stock assessments, Piper Sandler increased its price target for Tesla to $500 from $400 after a visit to China, maintaining an Overweight rating. Baird also upgraded Tesla’s stock rating from Neutral to Outperform, raising its price target significantly to $548, citing the company’s potential in AI leadership. Despite Tesla missing earnings estimates for three consecutive quarters, Baird noted a shift in investor focus toward the company’s future prospects. Additionally, Tesla’s humanoid robots gained attention after a pharmacy-related client signed a Letter of Intent to deploy them, as reported by Macquarie.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.