In the face of temporary shutdowns and fluctuating demand, Baird analyst Ben Kallo has forecasted promising Q3 reports for electric vehicle giants Tesla (NASDAQ:TSLA) and Rivian (NASDAQ:RIVN). This comes despite a 0.7% dip in Tesla's stock and a 0.9% premarket drop for Rivian on Tuesday.
Kallo has given Tesla an Outperform rating with a $300 price target. He attributes this positive outlook to the refreshed Model 3 vehicle which has been bolstered by strong demand in China and higher prices for both Model 3 and Model Y vehicles.
Meanwhile, Rivian, which is projected to deliver around 14,000 units this quarter amidst improving production conditions, has been titled a bullish Fresh Pick by Kallo. The upcoming R2 platform and R1 factory upgrades have warranted a $30 target price for the EV manufacturer.
Despite the minor setbacks in their stock performance this week, both Tesla and Rivian are poised for strong Q3 performances according to Kallo's analysis. The robust Chinese demand for Tesla's Model 3 and the anticipated production improvements at Rivian offer promising prospects for both companies.
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