Tesla is expected to post strong third-quarter sales in China, leading several analysts to raise their delivery estimates. At least four analysts have boosted their forecasts, citing increasing demand in China, a key market for the company, reports Bloomberg.
We’ve seen the strong insurance registration numbers coming out of China and everyone has noticed.
“This China strength comes at a very opportune time for Tesla, helping to offset ongoing weakness in the US and Europe,” said Barclays analyst Dan Levy, who raised his estimate to 470,000 vehicles from 462,000. Piper Sandler’s Alexander Potter predicts 459,000 deliveries, while RBC’s Tom Narayan expects 460,000. Baird’s Ben Kallo models a higher 480,000.
A solid delivery figure could ease concerns about weakening demand and growing competition. However, Tesla’s upcoming Robotaxi event on October 10, where the company is expected to showcase the real future of its Full Self-Driving (FSD) capabilities.
Tesla shares have climbed about 33% since early August, driven by growing confidence in the economy and expectations of lower interest rates. Wall Street’s average estimate for Tesla’s third-quarter deliveries stands at around 462,000 units. Analysts believe the Robotaxi event will be the next key catalyst for the stock.
Share of Tesla are up 0.35% for the day, at $255.16 per share as of writing. The stock is up 9.56% for the week and 19.83% for the month. Year-to-date, the stock is now up 2.73% and up 3.36% compared to one year ago.
