Canaccord sees Tesla beating Investing.com’s profit and delivery expectations

Investing.com — Canaccord Genuity analysts are bullish on Tesla’s (NASDAQ: ) upcoming 3Q24 results, predicting the electric vehicle giant will beat market expectations for both profit and deliveries.

The company revised its estimates for shipments and earnings based on its analysis of global data, which covers about 40 countries.

“Our enhanced database now covers delivery dates for approximately 40 countries monthly,” Canaccord noted, noting the improved tracking system for Tesla deliveries.

They said that despite the challenging global automotive environment, Tesla’s performance remained strong.

Canaccord’s updated estimates project Tesla’s 3Q24 deliveries at 469.2 thousand vehicles, compared to the consensus estimate of 458 thousand. While this is slightly down from the previous estimate of 480k, it still signals solid growth.

The firm noted that “September is typically the biggest sales month of the quarter,” which they factored into their revisions.

The firm also maintains a positive outlook for the rest of the year, projecting total 2024 deliveries of about 1.85 million vehicles, up 2.4% year over year, above the FactSet consensus of 1.78 million.

On the profitability front, Canaccord adjusted its 3Q24 non-GAAP EPS estimate to $0.75 from $0.98, still significantly ahead of the $0.61 consensus.

This review takes into account Tesla’s aggressive pricing strategies aimed at increasing demand in key markets. Analysts cited strong sales momentum in China and attractive financing options globally as key factors for the positive outlook.

Looking ahead, Canaccord maintains its 4Q24 delivery estimate of 552,000 vehicles, implying a substantial 17.7% increase over the previous quarter. They rely on Tesla’s historical patterns, noting that the company averaged a 20.4% quarterly gain between Q3 and Q4 of 2019.