Tesla Stock Target Increased at Truist Due to Lower Rates

Analysts at Truist have increased their price target for Tesla, currently rated as a Hold, from $215 to $236, citing falling interest rates as a significant factor behind this adjustment.

This revision follows Tesla’s third-quarter delivery figures, which met expectations with 463,000 units delivered—representing a 6.4% rise from the previous year. Although these figures aligned with market projections, Truist indicated that they were likely short of the higher expectations from buyers.

In contrast, Tesla’s production figures outperformed expectations, reaching 469,800 units—an 8% increase above analysts’ forecasts and a 9% year-over-year ascent. The closer alignment of delivery and production numbers is seen as a favorable indicator for investors, signaling a reduced disparity between the two metrics.

Another crucial driver behind the updated price target is the average selling prices (ASPs) of Tesla vehicles. Truist noted that their analysis suggests ASPs were either stable or slightly increased in the third quarter compared to the prior quarter. They project that ASPs will remain flat quarter-over-quarter for Q3, although they anticipate some long-term downward pricing pressures as Tesla may adjust its pricing strategy to stimulate demand.

Truist also highlighted the upcoming “Robotaxi” event on October 10 as a potential catalyst for Tesla’s stock performance. This event, titled “We, Robot,” is expected to shed more light on Tesla’s autonomous driving initiatives, which could have a substantial impact on the company’s future growth trajectory.

“Even with current delivery numbers and full earnings expected on October 23, the focus remains on Tesla’s upcoming Robotaxi event as the next potential catalyst for the stock,” commented Truist.