Tesla Set to Outperform Market Expectations in 3Q24: Canaccord Genuity's Optimistic Forecast
Investing.com -- Canaccord Genuity analysts are forecasting a bullish outlook for Tesla Inc. (NASDAQ: TSLA) as the electric vehicle (EV) leader gears up to release its third-quarter 2024 (3Q24) results. The firm predicts that Tesla will exceed Wall Street's expectations for both profit and vehicle deliveries.
Enhanced Data Analysis Bolsters Confidence
Canaccord has revised its delivery and earnings estimates after an in-depth analysis of global data from approximately 40 countries. "Our enhanced database now covers delivery data for ~40 countries on a monthly basis," Canaccord noted, emphasizing their strengthened tracking system for Tesla deliveries. This comprehensive data aggregation has enabled Canaccord to make more accurate projections.
Delivery Projections: Strong Growth Despite Challenges
Despite facing a challenging global automotive environment, Tesla's performance has been robust. Canaccord's updated estimates for 3Q24 deliveries stand at 469.2k vehicles, surpassing the consensus estimate of 458k. While this figure is slightly below their previous estimate of 480k, it still indicates solid growth. The firm also highlighted that "September is typically the highest sales month in the quarter," a factor they accounted for in their revisions.
For the full year, Canaccord projects total 2024 deliveries at around 1.85 million vehicles, representing a 2.4% year-over-year increase and exceeding the FactSet consensus of 1.78 million.
Profitability Estimates: Aggressive Pricing Pays Off
In terms of profitability, Canaccord has adjusted its 3Q24 non-GAAP EPS estimate from $0.98 to $0.75, which still significantly outpaces the $0.61 consensus. This revision reflects Tesla's aggressive pricing strategies aimed at boosting demand in key markets, particularly China, and the availability of attractive financing options globally.
Future Outlook: Continued Growth Anticipated
Looking ahead, Canaccord maintains its 4Q24 delivery estimate at 552k vehicles, implying a substantial 17.7% quarter-over-quarter increase. The firm bases this projection on Tesla's historical performance, noting that the company has averaged a 20.4% quarter-over-quarter gain between 3Q and 4Q since 2019.
Analysis for All Readers: What This Means for You
In simpler terms, Canaccord Genuity is very optimistic about Tesla's upcoming financial results. They believe Tesla will sell more cars and make more money than most experts currently expect. Despite some global challenges in the car market, Tesla is doing extremely well, especially in key markets like China.
Why does this matter to you? If you're an investor or considering investing in Tesla, this is good news. Higher-than-expected sales and profits often lead to a rise in stock prices, potentially offering you a profitable return on your investment. Even if you're not investing, Tesla's success can influence the broader market and the development of electric vehicles, which could impact your future car-buying decisions and the overall economy.
In essence, Tesla's strong performance and positive outlook suggest that the company is well-positioned for continued growth, making it a potentially lucrative investment opportunity.