Tesla (TSLA) gets upbeat estimates from Wall St amid “strongest ever” quarter

Credit: Tesla China/Twitter

Wall Street seems to be looking at Tesla’s (NASDAQ:TSLA) third-quarter results with an optimistic eye, with analysts recently giving upbeat estimates for the company’s third-quarter deliveries on Tuesday. One analyst even noted that Q3 2021 would likely be Tesla’s best-ever quarter to date, despite the headwinds being faced by the automotive sector due to the global semiconductor shortage. 

With Tesla ramping its deliveries with two electric vehicle factories, the company is now able to produce and deliver vehicles at volumes never reached before. Elon Musk, for his part, noted in a memo earlier this month that Tesla employees are advised to “go super hardcore” to make up for production challenges that the company faced in the early weeks of Q3 2021. 

Amidst these announcements, as well as drone flyovers of Gigafactory Shanghai showing that the site has turned into a hub of activity in recent weeks, analysts at Piper Sandler and RBC Capital Markets have raised their Tesla delivery estimates for the third quarter to about 233,000 vehicles. Credit Suisse, on the other hand, also noted that it is expecting Tesla to deliver 225,000-230,000 in the quarter ending September 30, 2021. 

These figures are quite optimistic, and they represent a rise of about 65%-67% compared to Q3 2020, which was already incredible on its own at the time. It should be noted that as of Monday, Wall Street analysts, on average, were expecting Tesla to deliver 222,700 vehicles in Q3 2021, as per data from Visible Data. 

Piper Sandler’s Alexander Potter, a five-star analyst, stated in a recent note that Tesla is poised for its best-ever quarter. “We think Q3 2ill be TSLA’s strongest quarter ever, and we are increasing our 2021 estimates accordingly,” Potter noted. The analyst also stated that he is raising his forecaster 2021 Tesla deliveries from 846,000 to 894,000. 

Credit Suisse analyst Dan Levy, for his part, noted that Tesla’s “quick pivot” to new microcontrollers and the company’s decision to rewrite its software seems to be helping Tesla weather the semiconductor shortage better than its peers in the auto sector. “Tesla appears to have been less impacted by the shortage than other (automakers),” Levy wrote. 

Disclaimer: I am long TSLA.

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Simon Alvarez: Simon is a reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday.
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