HSBC raises Tesla stock price target on delivery beat

HSBC has increased its price target for Tesla shares to $157, up from $125, after the company delivered 487,000 vehicles in the third quarter of 2026, exceeding both analyst estimates and the company's own projections. However, HSBC maintains a "Reduce" rating on the stock, citing valuation concerns. Despite a 2% drop in deliveries compared to the previous year, attributed to the expiration of IRA tax credits, Tesla's production fell short of expectations.

Energy storage deployment also lagged behind, reaching 13.7 gigawatt-hours, significantly below estimates. While Tesla's deliveries included primarily Model 3 and Model Y vehicles, production of higher-end models like Model S and X has slowed, and Cybertruck production remains limited. Some analysts at William Blair and Oppenheimer have retained positive ratings for Tesla, while others, like StoneX, have upgraded the company's credit facilities, citing potential growth opportunities.

Tesla's Full Self-Driving system has gained regulatory approvals in Croatia, expanding its presence in the European market.