Source: Jin10 Data

Analyst Addison Yu from Deutsche Bank predicts, $Tesla (TSLA.US)$ the delivery volume in the third quarter will increase year-on-year, at least in line with Wall Street's consensus expectations.

Despite the optimism for third-quarter deliveries and the Robotaxi conference Tesla will hold in two weeks, Tesla's stock failed to maintain its gains on Thursday, falling for the first time in four days.

Tesla's stock price closed down 1.1% at $254.22. The stock opened at $260.68; since mid-July, the price has not surpassed the $260 level. The S&P 500 index and the Dow Jones Industrial Average rose 0.4% and 0.6% respectively.

The initial market-wide rally boosted stock prices, but the impact gradually waned. The U.S. stock market responded positively to China's latest stimulus measures announcement.

Recently, Tesla's stock price surge is not solely due to China's stimulus policies. Over the past month, Tesla's performance has been exceptionally strong, with the stock rising over 20% as of Thursday's trading session.

One factor recently driving the stock price up was the Fed's rate cut on September 18. Since then, the price has risen nearly 12%. Lower rates reduce car payments, making cars more affordable and stimulating demand.

Delivery expectations also helped. According to FactSet data, Wall Street expects Tesla to deliver about 0.46 million vehicles in the third quarter, a year-on-year increase of about 6%. Demonstrating growth is crucial. In the first half of 2024, Tesla delivered around 0.831 million vehicles, a year-on-year decline of about 7%.

Most Wall Street reports previewing the financial results are positive, mentioning record deliveries in China. Deutsche Bank analyst Addison Yu said on Thursday that he expects delivery volumes to at least meet consensus figures. He rates Tesla stocks as "buy" with a target price of $295.

Tesla's stock also rose on market expectations of the company's Robotaxi event on October 10th.

While robot taxi services are a significant opportunity, Tesla still has much to prove, wrote analyst Emanuel Rosner of Wolfe Research.

He said on Thursday that the company has "important competitive advantages, but investors may need to have confidence in Tesla's progress towards fully autonomous vehicles. Proving this will be difficult, but this event could be a starting point."

Rosner rates Tesla stocks as "hold" without setting a target price.

It is expected that on October 10th, Tesla will unveil a physical robotaxi and inform investors when autonomous taxi services might be launched. How the market will react to this event remains unpredictable. Analyst Jed Dorsheimer of William Blair noted that Tesla stocks typically rise before significant company events and fall afterwards.

This is a pattern he has observed. Dorsheimer is not bearish. He rates Tesla stocks as "buy," indicating he expects the stocks to outperform the market without setting a target price.

Editor / jayden