Tesla stock (NASDAQ:TSLA) has been seeing some momentum as of late. But as per Baird analyst Ben Kallo in a recent note, there may be more gains to come for the electric vehicle maker in the coming weeks. In a note to clients, Kallo maintained his “Outperform” rating and $280 per share price target for TSLA stock.
The analyst stated that Tesla shares could see some upside after the company reports its third quarter 2024 vehicle deliveries next week. TSLA stock may also see some more momentum when the company holds its highly-anticipated Robotaxi event on October 10, 2024, the analyst noted.
“The near-term setup is favorable in our view, and we are buyers into both the deliveries released (estimated Oct. 2) and Robotaxi event (Oct. 10)… With the Robotaxi unveil event shortly after the estimated deliveries date, we speculate that even an in-line or weaker deliveries number would be viewed by investors as a look-through with a significant potential catalyst coming soon after,” Kallo wrote in his note.
Baird’s Ben Kallo: “We’ve had the opportunity to ride in different iterations of V12 & most recently 12.5 maybe 2 weeks ago. The pace of progress is accelerating … I think that’s one thing we’re trying to emphasize, this is accelerating at a faster pace than it has in the past!”… pic.twitter.com/ijEHJqsIwI
— Tesla New York (@TeslaNY) September 24, 2024
The analyst stated that he is expecting Tesla to unveil a lower-cost electric car together with the Robotaxi at the October 10 event. Such a vehicle could boost the outlook for TSLA stock, Kallo noted.
“We see the launch of a lower-priced vehicle as a positive for volume estimates in 2025, however, we note that switching production to enable a new vehicle would likely come with some factory downtime which may create lumpiness in deliveries,” the analyst wrote.
The Baird analyst highlighted that Tesla’s Q3 numbers are trending positively based on new vehicle registration data from China, as well as the absence of any factory downtime this quarter. Kallo expects Tesla to deliver 480,000 vehicles this Q3, which is well above the current FactSet consensus of 462,000 vehicles, as noted in a MarketWatch report.
Kallo also expects Tesla to deliver 1.83 million vehicles this 2024, which is also higher than FactSet consensus of 1.78 million.
Tesla shares have gone up 35.7% through Tuesday. In comparison, the Global X Autonomous & Electric Vehicles ETF has dropped 3.2%, and the S&P 500 has risen 4.8% in the same period.
Watch the Baird analyst discuss his recent outlook on Tesla in the video below.
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