Even if Tesla misses analyst delivery estimates for Q3, the stock may hold up well according to Piper Sandler analyst Alexander Potter.
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In a note to investors, Potter reiterated an Overweight rating and $300 price target on Tesla ($TSLA) shares. He believes any potential Q3 miss would reflect production ramp timing rather than demand issues.
Potter stated: “Intentional plant shutdowns should not be interpreted negatively, so if Q3 results are a ‘miss’, we doubt TSLA will sell off.”
The comments come after Tesla shifted its quarterly delivery push to Q4, likely resulting in lower Q3 numbers. Factory upgrades and production changeovers contributed to the move.
But Potter contends these dynamics are transient rather than indicative of core demand. He expects Tesla’s deliveries to rebound in Q4 as new capacity comes online.
The perspective highlights how Wall Street is adjusting frameworks to account for Tesla’s unconventional manufacturing strategies. Most automakers aim for consistent quarterly production.
Tesla’s flexibility to rapidly evolve its factories can lead to temporary volatility. But analysts like Potter remain confident in the company’s disruptive approach paying off long-term.
So while the upcoming Q3 results may disappoint against consensus forecasts, Tesla continues benefiting from patience around its unconventional path. Potter believes investors are looking well beyond any single quarterly number.
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