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Tesla will release the report on October 21. According to Goldman Sachs’ Mark Delaney, it will be impressive due to electric vehicle adoption, margins, and market share all increasing.
Amid the upcoming Tesla Inc (NASDAQ: TSLA) third-quarter earnings report, Goldman Sachs Group Inc (NASDAQ: GS) has raised its price target for Tesla stock. Goldman Sachs analyst Mark Delaney lifted the target from $400 to $450 while maintaining the ‘Neutral’ rating for the stock. Following the upgrade, Tesla stock jumped by 3.28% yesterday to close at $461.30. In the pre-market today, TSLA shares are 3.35% down, $445.25 per share.
Tesla Q3 Big Expectations from Goldman Sachs
Goldman Sachs analysts believe that Tesla will report strong results for the third quarter of this year. The company will release the report on October 21. According to Mark Delaney, it will be impressive due to electric vehicle adoption, margins, and market share all increasing. The analyst has also said Tesla will ‘benefit’ from an improving auto environment.
In the third quarter, Tesla produced just over 145,000 vehicles and delivered nearly 140,000 vehicles. This is an over 50 percent increase from the second quarter when the pandemic forced Tesla and other automakers to close factories and many consumers stayed away from car dealerships. Compared with a year earlier, Tesla’s deliveries increased by more than 40 percent in the third quarter.
Currently, sales are rising in part because of the pandemic’s impact on families and businesses. Some are spending money on cars instead of spending on travel and entertainment. Others are buying a new car because they are trying to avoid trains and buses. Due to the rise in sales, analysts are predicting strong earnings for Tesla for Q3 2020.
Tesla’s Chances for $2 Trillion Valuation
Recently, Tesla announced a new type of vehicle battery that would reduce costs while increasing vehicle range and safety. The news has not only made Tesla stock increase but also inspired the company’s supporters.
The Baron Capital founder Ron Baron who has always been bullish on Tesla believes the company stands good chances of becoming a $2 trillion company. Besides, he is expecting Tesla to build more factories and hit between $500 million and $800 million in sales in 10 years on just cars.
Ron Baron said:
“With the developments that have taken place recently, I think $2 trillion is the right number.”
He also commented on new batteries:
“The batteries is just another unbelievable business which I’m very excited about.”
Further, the billionaire investor stated:
“So far in the first four or five years that we’ve owned it, the stock went up and down like a yo-yo, and that would be expected. Because what they were doing — they were building facilities, hiring people, coming up with design. It’s a reasonable thing to bet against them.”
At present, Tesla’s market cap totals $429.84 billion. Year-to-date, its stock is 451.36% up.