By Michael Elkins
Deutsche Bank reiterated its Buy rating and $400 price target on Tesla Inc (NASDAQ:) ahead of the release of the electric vehicle maker’s third-quarter Year 22 shipments and production report. Tesla is expected to release Q3 2012 delivery and production numbers this weekend.
The company maintained its third-quarter shipment estimate at 367,000 units, reflecting a strong recovery from the extended COVID-related Shanghai plant shutdown and second-quarter logistical challenges, as well as the surge. power from factories in Berlin and Texas. Third-quarter revenue estimates were unchanged at $22.9 billion, while earnings-per-share estimates were raised from $1.11 to $1.14. Those numbers are more or less in line with the consensus of $22.7 billion in revenue and above the consensus forecast of $1.06 per share.
This update also comes ahead of Tesla’s Artificial Intelligence Day on Friday. Deutsche Bank analysts believe investors and Tesla fans at large will be waiting for an update to the FSD beta, robotaxi and other AI-related programs such as the Optimus robot. When presenting the company’s results, they expect Tesla to provide an update on its efforts to ramp up production in Berlin and Texas, as well as the latest production status of its 4,680 cells.
Additionally, Tesla CEO Elon Musk said the Cybertruck is on track to begin volume production next year and confirmed that the company will be working on developing a robotaxi to be launched in the coming years. following.
Finally, Deutsche Bank also expects investors to seek clarification on Tesla’s qualifications for the $7,500 consumer credit for EVs and the extent of the credit for battery production.
The analysts wrote in a note: “We continue to view Tesla as one of the most compelling stories in the automotive sector thanks to its pricing power, superior cost structure, strong execution, and that it has secured supply and is now building more significant capacity to support significant growth.”