RBC analyst Tom Narayan predicts Tesla will outperform Wall Street’s expectations for Q3 2024 deliveries. Narayan maintains a BUY rating on Tesla stock with a price target of $224.
Key points:
- RBC’s delivery forecast:
- Model Y and 3: 432,700 units
- Model S and X: 27,300 units
- Total: 460,000 units
- Wall Street consensus: 449,232 total vehicle deliveries
- Tesla viewed as a “safe haven” amid auto industry struggles:
- Global auto market declining
- Several European automakers, including Stellantis, have issued profit warnings
In a recent interview, Narayan explained RBC’s positive outlook on Tesla:
“We’re seeing it on a relative basis, which is how most auto investors look at it…versus what’s happening in the rest of the industry. This Stellantis profit warning comes on the back of three other profit warnings from European automakers in just the past couple of weeks. So I do think a lot of folks are looking for safety. Tesla interestingly seems to be that place where they can get that.”
NEWS: @Tesla is a place where investors can find safety, says RBC's Tom Narayan. $TSLA pic.twitter.com/YnRjXmklMG
— ALEX (@ajtourville) September 30, 2024
As the auto industry faces challenges, Tesla’s performance in Q3 2024 could solidify its position as a resilient player in the market. Investors will be closely watching the official delivery numbers when they are released.
