Investor's Corner
Tesla shares hit three-month high as Wall St firm ups Model 3 delivery estimates
Tesla shares (NASDAQ:TSLA) are approaching a 3-month high amidst new, optimistic expectations from a Wall Street firm about the Model 3’s delivery figures for Q2 2018. After Tuesday’s opening bell, Tesla stock was trading up $2.52% at $340.18 per share, the first time the company’s shares have hit the ~$340 range since March 13, 2018.
According to KeyBanc Capital Markets analyst Brad Erickson in a note to clients Monday, Tesla could positively surprise by delivering as much as 30,000 Model 3 for the second quarter. The Keybanc analyst further noted that the firm’s updated delivery estimates come from checks with Tesla’s sales centers.
“Our checks with sales centers indicate Model 3 deliveries are tracking ~50% higher than our prior estimates for the quarter, prompting us to raise our estimates. While the longer-term debate on TSLA remains more balanced … we maintain that evidence supporting the bear case is not likely to emerge in the near term, in our view,” the KeyBanc analyst wrote.
Tesla’s stock has seen an impressive recovery since the company held its 2018 Annual Shareholder Meeting, where CEO Elon Musk expressed an optimistic outlook about the production figures for the Model 3 and the ongoing expansion of Tesla’s energy business. Yesterday, Tesla’s momentum proved consistent, with shares rising an additional 4.55% to end the day’s trading at $332.10 per share amid CEO Elon Musk’s Twitter update about the first Full Self-Driving features for Tesla’s Hardware 2.0 fleet being released sometime in August as part of Software Version 9.
In his note, Erickson stated that his conversations with Tesla sales representatives in 20 stores revealed that delivery figures for Q2 2018 are pointing to numbers that are higher than his initial estimates, which stood at 20,000 Model 3 for the second quarter. Erickson also noted that he had increased Tesla’s full-year Model 3 delivery estimate from 98,182 to 118,182.
“We believe weekly run-rate volumes have moved from the high teens per store per week to the low 30s since our last checks in mid-April,” he wrote.
KeyBanc Capital Markets’ optimistic outlook on Tesla’s Model 3 performance this quarter comes as the latest vote of confidence for the Elon Musk-led company. Just yesterday, analysts from Berenberg raised its price target for Tesla to $500 per share, citing Tesla’s technological advantage over its competitors and a possible 25% gross margin for the Model 3.
After Tesla’s now-infamous Q1 2018 earnings call, Elon Musk predicted that the “short burn of the century” would be happening as the company starts achieving profitability. Last week alone, Tesla shorts lost $1.1 billion in mark-to-market losses on a single day as the company’s shares rose almost 9.7%. According to S3 Partners’ analyst S3 Partners’ Ihor DusaniwskyIhor Dusaniwsky, Tesla short-sellers are currently sitting on nearly $5 billion in mark-to-market losses since 2016, and this number could grow materially if the Elon Musk-led company can hold on to its current momentum.
According to a report from The Street, Tesla stock has already broken through the $310 resistance level, opening the door to more upside, and a test of the intermediate-term downtrend that identifies the top of Tesla’s correction up at $340 per share. If Tesla breaches the $340 mark, bulls can expect the ongoing uptrend to accelerate even more.
As of writing, Tesla stock is trading up $2.52% at $340.18 per share on Tuesday’s intraday.
Disclosure: I have no ownership in shares of TSLA and have no plans to initiate any positions within 72 hours.
Investor's Corner
Tesla analyst maintains $500 PT, says FSD drives better than humans now
The team also met with Tesla leaders for more than an hour to discuss autonomy, chip development, and upcoming deployment plans.
Tesla (NASDAQ:TSLA) received fresh support from Piper Sandler this week after analysts toured the Fremont Factory and tested the company’s latest Full Self-Driving software. The firm reaffirmed its $500 price target, stating that FSD V14 delivered a notably smooth robotaxi demonstration and may already perform at levels comparable to, if not better than, average human drivers.
The team also met with Tesla leaders for more than an hour to discuss autonomy, chip development, and upcoming deployment plans.
Analysts highlight autonomy progress
During more than 75 minutes of focused discussions, analysts reportedly focused on FSD v14’s updates. Piper Sandler’s team pointed to meaningful strides in perception, object handling, and overall ride smoothness during the robotaxi demo.
The visit also included discussions on updates to Tesla’s in-house chip initiatives, its Optimus program, and the growth of the company’s battery storage business. Analysts noted that Tesla continues refining cost structures and capital expenditure expectations, which are key elements in future margin recovery, as noted in a Yahoo Finance report.
Analyst Alexander Potter noted that “we think FSD is a truly impressive product that is (probably) already better at driving than the average American.” This conclusion was strengthened by what he described as a “flawless robotaxi ride to the hotel.”
Street targets diverge on TSLA
While Piper Sandler stands by its $500 target, it is not the highest estimate on the Street. Wedbush, for one, has a $600 per share price target for TSLA stock.
Other institutions have also weighed in on TSLA stock as of late. HSBC reiterated a Reduce rating with a $131 target, citing a gap between earnings fundamentals and the company’s market value. By contrast, TD Cowen maintained a Buy rating and a $509 target, pointing to strong autonomous driving demonstrations in Austin and the pace of software-driven improvements.
Stifel analysts also lifted their price target for Tesla to $508 per share over the company’s ongoing robotaxi and FSD programs.
Investor's Corner
Tesla wins $508 price target from Stifel as Robotaxi rollout gains speed
The firm cited meaningful progress in Tesla’s robotaxi roadmap, ongoing Full Self-Driving enhancements, and the company’s long-term growth initiatives.
Tesla received another round of bullish analyst updates this week, led by Stifel, raising its price target to $508 from $483 while reaffirming a “Buy” rating. The firm cited meaningful progress in Tesla’s robotaxi roadmap, ongoing Full Self-Driving enhancements, and the company’s long-term growth initiatives.
Robotaxi rollout, FSD updates, and new affordable cars
Stifel expects Tesla’s robotaxi fleet to expand into 8–10 major metropolitan areas by the end of 2025, including Austin, where early deployments without safety drivers are targeted before year-end. Additional markets under evaluation include Nevada, Florida, and Arizona, as noted in an Investing.com report. The firm also highlighted strong early performance for FSD Version 14, with upcoming releases adding new “reasoning capabilities” designed to improve complex decision-making using full 360-degree vision.
Tesla has also taken steps to offset the loss of U.S. EV tax credits by launching the Model Y Standard and Model 3 Standard at $39,990 and $36,990, Stifel noted. Both vehicles deliver more than 300 miles of range and are positioned to sustain demand despite shifting incentives. Stifel raised its EBITDA forecasts to $14.9 billion for 2025 and $19.5 billion for 2026, assigning partial valuation weightings to Tesla’s FSD, robotaxi, and Optimus initiatives.
TD Cowen also places an optimistic price target
TD Cowen reiterated its Buy rating with a $509 price target after a research tour of Giga Texas, citing production scale and operational execution as key strengths. The firm posted its optimistic price target following a recent Mobility Bus tour in Austin. The tour included a visit to Giga Texas, which offered fresh insights into the company’s operations and prospects.
Additional analyst movements include Truist Securities maintaining its Hold rating following shareholder approval of Elon Musk’s compensation plan, viewing the vote as reducing leadership uncertainty.
@teslarati Tesla Full Self-Driving yields for pedestrians while human drivers do not…the future is here! #tesla #teslafsd #fullselfdriving ♬ 2 Little 2 Late – Levi & Mario
Investor's Corner
Tesla receives major institutional boost with Nomura’s rising stake
The move makes Tesla Nomura’s 10th-largest holding at about 1% of its entire portfolio.
Tesla (NASDAQ:TSLA) has gained fresh institutional support, with Nomura Asset Management expanding its position in the automaker.
Nomura boosted its Tesla holdings by 4.2%, adding 47,674 shares and bringing its total position to more than 1.17 million shares valued at roughly $373.6 million. The move makes Tesla Nomura’s 10th-largest holding at about 1% of its entire portfolio.
Institutional investors and TSLA
Nomura’s filing was released alongside several other fund updates. Brighton Jones LLC boosted its holdings by 11.8%, as noted in a MarketBeat report, and Revolve Wealth Partners lifted its TSLA position by 21.2%. Bison Wealth increased its Tesla stake by 52.2%, AMG National Trust Bank increased its position in shares of Tesla by 11.8%, and FAS Wealth Partners increased its TSLA holdings by 22.1%. About 66% of all outstanding Tesla shares are now owned by institutional investors.
The buying comes shortly after Tesla reported better-than-expected quarterly earnings, posting $0.50 per share compared with the $0.48 consensus. Revenue reached $28.10 billion, topping Wall Street’s $24.98 billion estimate. Despite the earnings beat, Tesla continues to trade at a steep premium relative to peers, with a market cap hovering around $1.34 trillion and a price-to-earnings ratio near 270.
Recent insider sales
Some Tesla insiders have sold stock as of late. CFO Vaibhav Taneja sold 2,606 shares in early September for just over $918,000, reducing his personal stake by about 21%. Director James R. Murdoch executed a far larger sale, offloading 120,000 shares for roughly $42 million and trimming his holdings by nearly 15%. Over the past three months, Tesla insiders have collectively sold 202,606 shares valued at approximately $75.6 million, as per SEC disclosures.
Tesla is currently entering its next phase of growth, and if it is successful, it could very well become the world’s most valuable company as a result. The company has several high-profile projects expected to be rolled out in the coming years, including Optimus, the humanoid robot, and the Cybercab, an autonomous two-seater with the potential to change the face of roads across the globe.
@teslarati Tesla Full Self-Driving yields for pedestrians while human drivers do not…the future is here! #tesla #teslafsd #fullselfdriving ♬ 2 Little 2 Late – Levi & Mario
Tesla CEO Elon Musk teases insane capabilities of next major FSD update
Tesla Full Self-Driving v14.2 – Full Review, the Good and the Bad
