EV giant Tesla (NASDAQ:TSLA) will soon announce its Q3 deliveries, and the company expects solid volumes for the quarter, Electrek reported. Citing an internal email, the Electrek report highlighted that Tesla expects high delivery volumes at the end of the third quarter and is asking all its staff to help meet target numbers. While a surge in deliveries will act as a positive catalyst, cost headwinds could ruin the show and may restrict the upside in Tesla stock.
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A Quick Look at Tesla’s Deliveries
Tesla’s total deliveries stood at 254,695 in Q2, up 27% year-over-year. However, it fell about 18% from Q1 due to supply constraints and a prolonged shutdown at its Shanghai factory. As for Q3, analysts see a solid jump in growth.
Wedbush analyst Daniel Ives expects TSLA’s deliveries to hit 362,552, up 50% year-over-year. Further, the forecast shows a stark improvement of over 42% from Q2. Ives is bullish about TSLA, and his price target of $360 implies 27.2% upside potential.
Tesla’s aggressive push to ramp up deliveries could support its stock price, which is down about 20% year-to-date. However, headwinds from higher commodities and logistics costs could remain a drag. With that in the background, let’s see what the Street is projecting for TSLA stock.
What is the Future Price of Tesla Stock?
Given the ongoing headwinds, Wall Street sees a limited upside in TSLA stock. TSLA’s average price target of $311.97 on TipRanks implies 10.3% upside potential. Meanwhile, the stock commands a Moderate Buy consensus rating on TipRanks based on 18 Buys, six Holds, and five Sells.
Further, TSLA stock has negative indicators from hedge funds and insiders. Hedge funds sold 1.2M TSLA stock last quarter. Meanwhile, insiders sold Tesla stock worth $6.9B.
TSLA stock has a Neutral Smart Score of four out of 10.
Bottom Line
Strong demand and favorable policies provide a solid base for long-term growth for TSLA. However, production and cost headwinds and negative signals from hedge funds and insiders could limit the upside.
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