Summary
- Baird analyst Ben Kallo maintains "Outperform" rating and $280 per share price target for TSLA stock
- Analyst expects Tesla stock to see gains after third quarter 2024 vehicle deliveries and Robotaxi event
- Anticipates Tesla unveiling a lower-cost electric car at the Robotaxi event on October 10, 2024
- Kallo predicts positive Q3 numbers for Tesla based on new vehicle registration data from China
- Tesla shares have risen 35.7% while Global X Autonomous & Electric Vehicles ETF dropped 3.2% in the same period
Article
Baird analyst Ben Kallo maintains an “Outperform” rating and $280 per share price target for Tesla (TSLA) stock, anticipating more gains to come for the electric vehicle maker in the near future. Kallo believes that Tesla shares could see upside following the company’s third-quarter 2024 vehicle deliveries report and the highly-anticipated Robotaxi event scheduled for October 10, 2024. He suggests that even if the deliveries numbers are in line or weaker, investors may view them as a temporary setback with a significant catalyst event on the horizon.
Kallo expects Tesla to unveil a lower-cost electric car at the October 10 event, which could enhance the outlook for TSLA stock by increasing volume estimates for 2025. However, he notes that transitioning production to accommodate a new vehicle may result in temporary factory downtime, potentially leading to irregularities in deliveries. The analyst highlights positive trends in Tesla’s Q3 numbers based on new vehicle registration data from China and the absence of factory downtime, projecting deliveries of 480,000 vehicles for the quarter and 1.83 million vehicles for 2024, higher than current FactSet consensus estimates.
Tesla shares have experienced a 35.7% increase, outperforming the Global X Autonomous & Electric Vehicles ETF, which dropped 3.2%, and the S&P 500, which rose 4.8% during the same period. Kallo emphasizes the accelerated progress of Tesla’s developments, particularly in the unveiling of a new version of the V12 and the upcoming Robotaxi event. He believes that the near-term setup for Tesla is favorable, making it a good opportunity for investors to consider buying into the stock ahead of potential catalyst events.
Overall, Baird analyst Ben Kallo remains optimistic about Tesla’s future prospects, foreseeing more gains ahead for TSLA stock. He anticipates positive outcomes from the upcoming third-quarter deliveries report and the Robotaxi event, along with the potential impact of a lower-cost electric vehicle launch. With the momentum building for Tesla and the expected positive trends in deliveries and production, Kallo’s outlook suggests that Tesla could continue to see growth and outperform the market in the coming weeks and months.
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