Tesla stock (TSLA) is making a comeback after declining post-third-quarter earnings and revenue, leading up to the Cybertruck delivery event on Thursday. However, the question remains whether TSLA can achieve its goal of delivering 1.8 million vehicles by 2023.
Tesla faced a setback when it reported disappointing financials for Q3 on Oct. 18, resulting in a drop in shares as analysts expressed concerns about the company’s strategy in the near-term and its potential to maintain growth despite a lack of EPS growth in 2024. However, the stock has seen an uptick in November, especially with the upcoming Cybertruck delivery event.
Despite the optimistic outlook, Jefferies analyst Philippe Houchois recently lowered the firm’s price target on TSLA, expressing doubts while referencing the Cybertruck deliveries. On the other hand, Morgan Stanley analyst Adam Jonas believes that Tesla needs to focus on achieving consensus EPS estimates and successfully launching new vehicles, including the Cybertruck, to bolster its stock.
Tesla is aiming to deliver 1.8 million vehicles in 2023, and as the year-end approaches, its performance remains a focal point for investors. There is uncertainty around meeting this target, with experts trimming projections and anticipating around 473,000 deliveries in Q4. This has led to a decline in the average EPS estimate for 2023, causing concerns about the company’s growth.
Following the disappointing earnings, Tesla shares took a hit with its Q3 profits and revenues falling below expectations. CEO Elon Musk’s warning on the hurdle with Cybertruck and the broader economy further dampened investor sentiment.
With many challenges ahead, including achieving volume production with the Cybertruck and Musk’s recent engagement in other ventures, Tesla’s stock has faced a rollercoaster ride. The company’s future may hinge on its ability to move beyond vehicle sales, as highlighted by an analyst at HSBC who emphasized the significance of Tesla expanding its portfolio.
Despite the obstacles, Tesla’s transformative influence on the auto industry means it has enjoyed a tremendous run over its history. However, with its recent struggles, it is apparent that Tesla needs to prove itself to investors and solidify its growth story in the coming years.
