Shares of Tesla, Inc. (TSLA) are experiencing a strong surge in pre-market trading on Monday, reversing a portion of the losses incurred on Friday. This optimistic sentiment surrounding the electric vehicle manufacturer’s stock is primarily attributed to hopeful expectations regarding the company’s third-quarter delivery figures. Tesla typically releases this data shortly after the end of each quarter, meaning an announcement is likely within the next week.
Barclays analyst Dan Levy predicts that Tesla is on track to report third-quarter deliveries of 470,000 units, surpassing the consensus estimate of 461,000. This prediction aligns with recent trends in China, where weekly insurance data for Tesla vehicles has shown a significant increase this quarter. Notably, fund manager Gary Black has commented on the robust 15,600 insured registrations for the week of September 9-15, suggesting the company is poised for a record-breaking quarter.
However, the picture in Europe is less optimistic. Data released by the European Automobile Manufacturers Association (ACEA) reveals that Tesla’s sales in Europe dropped by 36% year-over-year in August, reaching 21,701 vehicles. The ACEA attributed this decline to a broader downward trend in the electric car market.
Despite this European slowdown, Tesla’s position remains favorable due to several factors. The potential for lowered interest rates by the Federal Reserve could unlock a surge in demand, which has been constrained by challenging economic conditions. Furthermore, Tesla’s valuation remains relatively inexpensive compared to other mega-cap peers.
In pre-market trading on Monday, Tesla shares rose 1.45% to $241.70. While other members of the Magnificent Seven tech giants exhibited mixed sentiment, Apple (AAPL), Amazon (AMZN), and NVIDIA (NVDA) remained relatively flat, while Microsoft (MSFT) experienced a moderate decline. Meanwhile, Meta Platforms (META) climbed 1.20%, and Alphabet (GOOGL, GOOG) saw moderate gains.
