Tesla reports record Q3 deliveries

Tesla (TSLA.US) stock rose nearly 3% during today's session after the company confirmed a new delivery record of 241,300 electric vehicles in the third quarter. The numbers were far better than any that Tesla had seen before, with production figures of just over 206,000 and deliveries of 201,250 in the second quarter having been the previous high-water mark. This is a 73% increase over the same quarter a year ago. Q3 figures easily beat analysts’ expectations of 222,000 vehicles. Company said it remains on course to meet ambitious full-year targets despite the global semiconductor chips shortage.

Sentiment improved further after the National Highway Traffic Safety Administration declined to open a formal investigation into Tesla vehicle fires following a nationwide petition first started in 2019.

However, not everyone is so optimistic. JP Morgan increased the price target for Tesla stock from $180 to $215, but that still represents a significant downside on Tesla’s current valuation. Analyst Ryan Brinkman from JP Morgan said: "While our new higher price target continues to imply material potential downside, we do not believe it is ungenerous, including as it values Tesla as the world’s second largest automaker by market capitalization, which is just one notch down vs. its current (admittedly by far) #1 position despite its ranking as only the 18th largest automaker by unit volume. Tesla fundamentals, including unit volume outlook, continue to improve, although its present valuation in our view continues to demand even more, as made clear when comparing its current market capitalization."

Tesla (TSLA.US) launched today's session with a bullish price gap after the company reported better-than-expected deliveries for Q3. However buyers failed to break above major resistance at $815.00 which coincides with the upper limit of the ascending channel. Currently the price is heading towards local support at $765,00 which is marked with earlier price reactions. Should break lower occur, then downward move may accelerate towards the support zone around the psychological $700,00 level. Source: xStation5