StoneX reiterates Buy rating on Tesla stock ahead of Q3 deliveries

StoneX has reaffirmed its Buy rating and set a price target of $475.00 for Tesla Inc. (NASDAQ:TSLA) stock, ahead of the company's expected third-quarter delivery report. Currently trading at $377.94, Tesla's market capitalization stands at $1.49 trillion. However, InvestingPro's analysis suggests the stock is overvalued at present, with a P/E ratio of 351.

The firm anticipates Tesla to report around 446,500 vehicle deliveries for Q3, indicating a 7% sequential decline and a 10% year-over-year decrease, slightly below FactSet consensus estimates. StoneX also expects Tesla to generate $27.5 billion in revenue for Q3, with adjusted earnings per share of $0.45 and adjusted EBITDA of $4.0 billion.

Energy storage deployments are expected to reach 16.2 gigawatt-hours, up 20% sequentially. While acknowledging the energy storage growth would help offset the lower vehicle volume, the focus will primarily be on pricing, vehicle mix, and inventory levels to determine if demand supports profitability without relying on additional incentives.