As Tesla (NASDAQ: TSLA) prepares to unveil its third-quarter financials later this Wednesday, October 18, the global investing community’s eyes are sharply focused, especially after the company’s unimpressive Q3 delivery announcement earlier this month.
Analysts forecast that Tesla’s EPS will witness a sharp contraction of 31% to 72 cents, marking a two-year low for the celebrated CEO, Elon Musk. Nevertheless, they anticipate a silver lining, with revenues slated to climb by 13% to approximately $24.18 billion.
There’s increasing trepidation among analysts about Tesla’s profit margins, which are presumed to linger beneath its designated “floor,” suggesting potential unexpected price slashes as 2023 draws to a close.
Yet, Tesla enthusiasts seem unyielding in their optimism, holding high hopes for a significant Q4 delivery surge, especially with the upcoming reimagined Model 3 release in China and the anticipated Cybertruck launch.
Wall Street analysts outlook
Aggregating inputs from 30 leading Wall Street analysts over the previous quarter, the consensus 12-month target for Tesla is pegged at $258.38. This spectrum ranges from a bullish estimate of $400 to a bearish one of $85, signifying a modest 1.39% deviation from the most recent trading price of $254.85.
Breaking it down further, of the 30 analysts, the sentiment distribution is as follows: 12 bullish (Buy), 14 neutral (Hold), and 4 bearish (Sell).
Projected views from analysts over the upcoming year remain divided, despite the promising prospects slated for Q4 and beyond. Industry insiders anticipate the Cybertruck to commence customer deliveries around the cusp of November and December.
In the words of an esteemed analyst, Dan Ives:
“The broader economic climate isn’t necessarily in full bloom, yet we’re of the conviction that Tesla’s demand trajectory has found its footing at present valuations, with a bullish Q4 in sight.”
In a recent note, Piper Sandler’s market analyst, Alexander Potter, recalibrated his stance on Tesla, trimming down his stock price forecast to $290 from an earlier $300 while retaining an overweight recommendation.
“While the Cybertruck and other expansion endeavors loom large, we wouldn’t rule out a somewhat stagnant trading pattern for TSLA in the approaching months.”
Tesla chart analysis
Over the past month, TSLA’s trading activity has fluctuated significantly between $234.58 and $273.93. Currently nestled mid-range, potential resistance looms overhead.
The stock finds support between $244.39 and $253.81—a region defined by multiple trend lines and moving averages across various time horizons.
Conversely, resistance is poised between $266.33 and $268.66, backed by an array of trend indicators. Notably, in the preceding 30-day span, TSLA concluded 16 trading days in the green, indicating a bullish close over the opening price on 53% of occasions.
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