Tesla beats third-quarter delivery estimates

Tesla reported third-quarter electric vehicle deliveries of 486,532 units, exceeding Wall Street expectations of approximately 461,100 units. This performance has led to increased optimism among analysts, with some noting that the company is on track to surpass its 2024 full-year results.

Analysts from Deutsche Bank raised their price target for Tesla to $420, citing demand in the United States, China, and Europe. While the delivery beat helped clear excess inventory, some analysts noted potential risks, including high capital expenditure projected to exceed $25 billion by 2026 and pressure on automotive gross margins due to strategic price reductions used to stimulate demand.

Despite the positive delivery news, investors remain cautious regarding the company's elevated valuation and broader headwinds facing the electric vehicle market.