Key facts
- Analysts are upbeat heading into Tesla's third-quarter earnings report.
- Tesla unveiled its long-awaited Roadster.
- Elon Musk indicated a committee is exploring a potential merger with SpaceX.
- Tesla's AI projects and capex spending are key focus areas for analysts.
- Yorkville Ives & Co reiterated an 'outperform' rating with a $500 price target.
- Morningstar maintained a fair value estimate of $450 for Tesla shares.
Analysts are approaching Tesla's third-quarter earnings report with optimism, anticipating updates on artificial intelligence initiatives and potential merger discussions with SpaceX. Despite a challenging year marked by concerns over profit margins and a slowdown in the electric vehicle market, Tesla recently surpassed its delivery estimates, selling 486,532 vehicles, which was ahead of the expected 461,974, although down 2% year-over-year. The company's shares were trading around $373 on Tuesday, down 14% year-to-date. The unveiling of the new Roadster is seen as a brand-building exercise rather than a significant sales driver, with production limited. Investors are also focused on Tesla's progress in AI, robotics, and its full self-driving technology, which is believed to be supporting delivery growth.