Tesla tracks higher as more analysts return to the bull camp

Tesla (NASDAQ:TSLA) tracked higher in early trading on Tuesday after Deutsche Bank resumed coverage of the electric vehicle stock with a Buy rating and named it a top pick in the automobile sector.

The firm said it sees Tesla (TSLA) as a technology platform attempting to reshape multiple industries. Analyst Edison Yu said the stock deserves a unique premium due to the potential with the autonomous driving and humanoid robot businesses. In addition, the energy storage was highlighted as undergoing a major growth/margin inflection and is set to generate +$13 billion in sales in 2025.

“Near-term, automotive deliveries/margin have indeed been softer, but we view this as temporary ahead of new models/refreshes coming in the pipeline. Long-term, Tesla is an emerging leader in autonomous driving (robotaxi) and humanoid robots Optimus… which represent some of the most clear and lucrative applications of end-to-end AI,”

Wall Street analysts have a consensus Hold rating on Tesla (TSLA). On Seeking Alpha, the last four articles published by analysts on Tesla (TSLA) have all been on the bullish side, although the consensus rating is also at Hold.

Tesla (TSLA) is only a few weeks away from issuing its Q3 deliveries report, which will land on the lap of investors before the company’s robotaxi event on October 10 and the release of the full Q3 earnings report later in the month. For perspective, Tesla (TSLA) delivered 444K vehicles in Q2 and 435K vehicles in Q3 a year ago. At last check, the consensus estimate of analysts was for Tesla (TSLA) to deliver 461K vehicles in Q3. The expected breakdown of Tesla (TSLA) deliveries is 18.1K Model S/X vehicles, 430.4K Model 3/Y vehicles, and 12.8K Cybertrucks. Looking further down the road, the consensus estimate is for Tesla (TSLA) to deliver 494K vehicles in Q4.

Shares of Tesla (TSLA) were up 0.74% in premarket trading on Tuesday, after rising 2.63% on Monday.