Electric vehicle giant Tesla Inc (NASDAQ:TSLA) could share more details on demand and a strategy for the upcoming Cybercab when the company reports third-quarter financial results after market close Wednesday.
The Tesla Analyst: Wedbush analyst Daniel Ives reiterated an Outperform rating on Tesla with a $300 price target.
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The Analyst Takeaways: Ives said Tesla CEO Elon Musk will likely address the electric vehicle demand environment for the fourth quarter and 2025 when the company reports financial results Wednesday.
"While many investors left the Robotaxi Day clearly wanting more details on the broader autonomous and AI strategy at Tesla, we would expect Musk to address some of the timing/specifics around its FSD and Cybercab strategy on the conference call," Ives said.
Tesla investors and analysts didn't hear updates on Tesla's sub-$30k vehicle during the Robotaxi Day event and Ives believes this vehicle, which he expects to be released in mid-2025, could be highlighted on this week's earnings call.
"Overall we expect generally in-line 3Q headline numbers with some slight upside likely on the margins front showing a bottoming on this key metric."
Ives said the 1.8 million unit estimate for 2024 "remains hittable" after the September quarterly delivery report saw figures in-line with estimates. Going forward, Ives said, "2 million+ number the focus for 2025."
"We remain confident in Tesla's ability to hit 1.8 million deliveries for FY24 which we will view as a solid feat given the extensive white-knuckle moments seen throughout the first half of the year."
The analyst also said margins will be a key focus for analysts.
"We need to start seeing this key metric head into the high teens for 3Q/4Q to give the Street comfort much of the price cuts are in the rear-view mirror showing better margin days are ahead for 2025."
Ives said strength in China and the evolving AI strategy could be other items to watch for the "bullish Tesla narrative."
TSLA Price Action: Tesla stock is down 1.52% to $217.36 on Monday versus a 52-week trading range of $138.80 to $271. Tesla stock is down 12% year-to-date in 2024.
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Photo: Courtesy Tesla
