Tesla's Q3 deliveries may underperform due to limited growth, says Deutsche Bank

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Tesla Inc. (NASDAQ:TSLA) may face underperformance in its third quarter deliveries and production due to limited growth and downtime caused by Model 3 EV upgrades, according to Deutsche Bank's Emmanuel Rosner. The analyst's forecast this Wednesday comes in the wake of Tesla's decision not to ramp up output at its Austin and Berlin factories, which he identifies as a key factor affecting the automaker's 2024 delivery forecast.

Moreover, Baird's Ben Kallo has also predicted lower Q3 deliveries for Tesla than Wall Street’s expectations earlier this week. This assessment could potentially impact TSLA's stock price negatively. As per InvestingPro data, TSLA's 1 Week Price Total Return has already shown a decrease of -7.03%.

Despite these potential setbacks, Rosner maintains his buy stance on Tesla. This position diverges from the FactSet consensus, indicating differing views among financial analysts about the electric vehicle maker's near-term performance. The evaluations by these analysts suggest that while Tesla is navigating through a period of upgrades and strategic decisions, market expectations remain high. The forthcoming quarter results will provide clearer insights into how these factors have influenced the company's performance.

InvestingPro's real-time metrics show a robust financial position for Tesla, with a market cap of $765.47 billion and a revenue growth of 39.99%. Tesla also holds more cash than debt on its balance sheet, as per InvestingPro Tips, indicating strong financial health. The company has been consistently increasing earnings per share, which is a positive sign for investors. However, it's worth noting that Tesla's stock price movements are quite volatile, which is something investors should be aware of.

For those interested in a deeper analysis, additional InvestingPro Tips for TSLA are available, offering insights on various aspects of the company's financial health, stock performance, and market position. For instance, Tesla is identified as a prominent player in the automobile industry and analysts predict the company will be profitable this year. These and 19 other detailed tips can be found at InvestingPro.

In conclusion, despite the potential short-term challenges, Tesla's long-term prospects remain promising. The company's strong financial health, consistent increase in earnings per share, and dominant position in the industry, all contribute to its potential for future growth.

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