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Investor's Corner

Tesla set for ‘massive trajectory’ for Q3 deliveries fueled by September demand

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    • Wedbush analyst Dan Ives says September Tesla deliveries are on pace for “massive trajectory”
    • Ives reiterates “Outperform” rating; holds $1,000 price target
    • Tesla on pace for 230,000 deliveries, Ives predicts

Tesla (NASDAQ: TSLA) is set for its biggest quarter in company history, according to Wedbush analyst and $TSLA bull Daniel Ives. Ives, who has periodically put his two cents regarding Tesla stock for several years, has spoken highly of the electric automaker, giving the company credit for being the leading force in the up-and-coming “green tidal wave” that will overtake the automotive sector as a whole. Tesla’s Q3 2021 is likely to be fed in part by September demand, which Ives believes is trending toward historic levels thanks to the automaker’s ability to avoid the long and drawn-out shortage of semiconductor chips.

Ives, who currently maintains an “Outperform” rating on $TSLA stock with a price target of $1,000, said that he is confident Tesla would exceed consensus expectations, which have Q3 deliveries set at 123,000 vehicles. Ives is more convinced of Tesla hitting 230,000 deliveries in Q3, mainly fueled by a “massive trajectory” of between 145,000 to 150,000 deliveries in September alone.

“The pace of EV deliveries in the US and China have been robust the last 4-6 weeks with an eye-popping growth trajectory heading into 4Q and 2022 for Musk & Co.,” Ives wrote in a note to investors.

September may be the saving grace for Tesla in Q3, especially as Elon Musk wrote in a leaked email to Tesla employees earlier this month that Q3 has the potential to be the company’s most remarkable. The CEO told workers that this week has the potential to be the “most intense delivery week ever,” as Tesla continues to trend toward record numbers once again. Tesla has not seen a decline in sales or deliveries of its vehicles Quarter-over-Quarter since Q1 2019.

The only reason Ives believes Tesla won’t have an even bigger quarter than he expects is due to the semiconductor chip shortage. While Tesla was able to avert most of the production delays and manufacturing stoppages with the creation of its own in-house microcontrollers, there was still a negative effect on the company’s production and delivery rate in July and August, he said in the note. Ives believes Tesla would have delivered around 80,000 to 90,000 vehicles for the first two months of the quarter. Overall, Ives said that the chip shortage may have decreased the overall production and delivery number by around 40,000 units.

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Tesla’s decision to export vehicles from Shanghai to Europe earlier this month to begin sales of the Model Y crossover on the continent could have also affected the automaker’s overall outlook for Q3. Ives believes the intense and complicated logistical process may have thrown a few wrenches into Tesla’s overall growth.

Even still, as Tesla navigated through the chip shortage and handled a new logistical process with relative ease, Ives is convinced that Tesla will still report its biggest quarter when Q3 wraps up tomorrow.

Analysts at other financial firms have already listed their estimates for Tesla’s third quarter. Many analysts have expectations for around 230,000 vehicles, including Alex Potter of Piper Sandler and Credit Suisse analyst Dan Levy. The analysts estimated 233,000 and between 225,000-230,000 deliveries for Q3, respectively.

Disclosure: Joey Klender is a TSLA Shareholder.

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Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Tesla investors will be shocked by Jim Cramer’s latest assessment

Jim Cramer is now speaking positively about Tesla, especially in terms of its Robotaxi performance and its perception as a company.

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Credit: CNBC Television/YouTube

Tesla investors will be shocked by analyst Jim Cramer’s latest assessment of the company.

When it comes to Tesla analysts, many of them are consistent. The bulls usually stay the bulls, and the bears usually stay the bears. The notable analysts on each side are Dan Ives and Adam Jonas for the bulls, and Gordon Johnson for the bears.

Jim Cramer is one analyst who does not necessarily fit this mold. Cramer, who hosts CNBC’s Mad Money, has switched his opinion on Tesla stock (NASDAQ: TSLA) many times.

He has been bullish, like he was when he said the stock was a “sleeping giant” two years ago, and he has been bearish, like he was when he said there was “nothing magnificent” about the company just a few months ago.

Now, he is back to being a bull.

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Cramer’s comments were related to two key points: how NVIDIA CEO Jensen Huang describes Tesla after working closely with the Company through their transactions, and how it is not a car company, as well as the recent launch of the Robotaxi fleet.

Jensen Huang’s Tesla Narrative

Cramer says that the narrative on quarterly and annual deliveries is overblown, and those who continue to worry about Tesla’s performance on that metric are misled.

“It’s not a car company,” he said.

He went on to say that people like Huang speak highly of Tesla, and that should be enough to deter any true skepticism:

“I believe what Musk says cause Musk is working with Jensen and Jensen’s telling me what’s happening on the other side is pretty amazing.”

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Tesla self-driving development gets huge compliment from NVIDIA CEO

Robotaxi Launch

Many media outlets are being extremely negative regarding the early rollout of Tesla’s Robotaxi platform in Austin, Texas.

There have been a handful of small issues, but nothing significant. Cramer says that humans make mistakes in vehicles too, yet, when Tesla’s test phase of the Robotaxi does it, it’s front page news and needs to be magnified.

He said:

“Look, I mean, drivers make mistakes all the time. Why should we hold Tesla to a standard where there can be no mistakes?”

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It’s refreshing to hear Cramer speak logically about the Robotaxi fleet, as Tesla has taken every measure to ensure there are no mishaps. There are safety monitors in the passenger seat, and the area of travel is limited, confined to a small number of people.

Tesla is still improving and hopes to remove teleoperators and safety monitors slowly, as CEO Elon Musk said more freedom could be granted within one or two months.

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Investor's Corner

Tesla gets $475 price target from Benchmark amid initial Robotaxi rollout

Tesla’s limited rollout of its Robotaxi service in Austin is already catching the eye of Wall Street.

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Credit: Tesla

Venture capital firm Benchmark recently reiterated its “Buy” rating and raised its price target on Tesla stock (NASDAQ: TSLA) from $350 to $475 per share, citing the company’s initial Robotaxi service deployment as a sign of future growth potential.

Benchmark analyst Mickey Legg praised the Robotaxi service pilot’s “controlled and safety-first approach,” adding that it could help Tesla earn the trust of regulators and the general public.

Confidence in camera-based autonomy

Legg reiterated Benchmark’s belief in Tesla’s vision-only approach to autonomous driving. “We are a believer in Tesla’s camera-focused approach that is not only cost effective but also scalable,” he noted. 

The analyst contrasted Tesla’s simple setup with the more expensive hardware stacks used by competitors like Waymo, which use various sophisticated sensors that hike up costs, as noted in an Investing.com report. Compared to Tesla’s Model Y Robotaxis, Waymo’s self-driving cars are significantly more expensive.

He also pointed to upcoming Texas regulations set to take effect in September, suggesting they could help create a regulatory framework favorable to autonomous services in other cities.

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“New regulations for autonomous vehicles are set to go into place on Sept. 1 in TX that we believe will further help win trust and pave the way for expansion to additional cities,” the analyst wrote.

https://twitter.com/herbertong/status/1938287117441855616?s=10

Tesla as a robotics powerhouse

Beyond robotaxis, Legg sees Tesla evolving beyond its roots as an electric vehicle maker. He noted that Tesla’s humanoid robot, Optimus, could be a long-term growth driver alongside new vehicle programs and other future initiatives.

“In our view, the company is undergoing an evolution from a trailblazing vehicle OEM to a high-tech automation and robotics company with unmatched domestic manufacturing scale,” he wrote.

Benchmark noted that Tesla stock had rebounded over 50% from its April lows, driven in part by easing tariff concerns and growing momentum around autonomy. With its initial Robotaxi rollout now underway, the firm has returned to its previous $475 per share target and reaffirmed TSLA as a Benchmark Top Pick for 2025.

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Tesla blacklisted by Swedish pension fund AP7 as it sells entire stake

A Swedish pension fund is offloading its Tesla holdings for good.

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tesla
(Credit: Tesla)

Tesla shares have been blacklisted by the Swedish pension fund AP7, who said earlier today that it has “verified violations of labor rights in the United States” by the automaker.

The fund ended up selling its entire stake, which was worth around $1.36 billion when it liquidated its holdings in late May. Reuters first reported on AP7’s move.

Other pension and retirement funds have relinquished some of their Tesla holdings due to CEO Elon Musk’s involvement in politics, among other reasons, and although the company’s stock has been a great contributor to growth for many funds over the past decade, these managers are not willing to see past the CEO’s right to free speech.

However, AP7 says the move is related not to Musk’s involvement in government nor his political stances. Instead, the fund said it verified several labor rights violations in the U.S.:

“AP7 has decided to blacklist Tesla due to verified violations of labor rights in the United States. Despite several years of dialogue with Tesla, including shareholder proposals in collaboration with other investors, the company has not taken sufficient measures to address the issues.”

Tesla made up about 1 percent of the AP7 Equity Fund, according to a spokesperson. This equated to roughly 13 billion crowns, but the fund’s total assets were about 1,181 billion crowns at the end of May when the Tesla stake was sold off.

Tesla has had its share of labor lawsuits over the past few years, just as any large company deals with at some point or another. There have been claims of restrictions against labor union supporters, including one that Tesla was favored by judges, as they did not want pro-union clothing in the factory. Tesla argued that loose-fitting clothing presented a safety hazard, and the courts agreed.

tesla employee

(Photo: Tesla)

There have also been claims of racism at the Fremont Factory by a former elevator contractor named Owen Diaz. He was awarded a substantial sum of $137m. However, U.S. District Judge William Orrick ruled the $137 million award was excessive, reducing it to $15 million. Diaz rejected this sum.

Another jury awarded Diaz $3.2 million. Diaz’s legal team said this payout was inadequate. He and Tesla ultimately settled for an undisclosed amount.

AP7 did not list any of the current labor violations that it cited as its reason for

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