Tesla stock edged lower on Tuesday even as Wall Street analysts lifted their price targets, with investors turning their attention to upcoming third-quarter delivery results.
The Tesla stock was down 1.3% at $437.09 in early trading, while S&P 500 and Dow Jones Industrial Average futures slipped 0.1% and 0.2%, respectively.
The stock is also under pressure as an FT report stated that CEO Elon Musk’s companies might be facing severe employee exodus.
Analysts raise Tesla’s stock price target
Canaccord analyst George Gianarikas raised his Tesla price target to $490 from $333 late Monday, maintaining a Buy rating after debating a potential downgrade.
“We wrote a note in early January where we underwent the same [downgrade] debate and inked our struggles on paper… We kept our Buy rating. And despite the volatile ride since, we’re glad we did,” Gianarikas wrote.
He cited strong third-quarter deliveries, new EV models, growing momentum in Tesla’s energy business, and artificial intelligence opportunities such as robo-taxis and humanoid robots as drivers of potential upside.
Earlier, Wedbush analyst Dan Ives boosted his Tesla price target to a Street-high $600 from $500 while reiterating a Buy rating.
Deutsche Bank also raised its target to $435 from $345 ahead of the quarterly delivery update.
Tesla’s delivery expectations
Tesla is set to release third-quarter delivery numbers this week, with estimates suggesting around 443,000 vehicles delivered.
That would mark a 4% decline from a year earlier but a 15% improvement from the previous quarter.
Analysts note that strong US sales helped lift expectations in recent weeks as customers rushed to secure purchases before the $7,500 federal tax credit expired.
Tesla has leaned into the deadline with aggressive discounts and marketing, positioning the quarter as potentially strong on deliveries, though views remain split on whether it signals a rebound or a final strong showing for some time.
Musk’s companies face senior executive exodus
Elon Musk’s companies have seen a series of high-level departures over the past year, with executives leaving key roles across Tesla and his artificial intelligence start-up xAI, the Financial Times reported.
At Tesla, exits have included senior members of its US sales team, leaders in battery and power-train operations, its public affairs division, and the company’s chief information officer.
Core members of the Optimus robot and AI teams — central to Musk’s long-term vision for the automaker — have also departed.
The wave of resignations underscores the strain of Musk’s management style and political activism, as the billionaire attempts to juggle leadership of five companies, including SpaceX and Tesla, with a combined workforce exceeding 140,000 people.
Tesla’s September rally
Despite Tuesday’s pullback, the Tesla stock has rallied about 70% in the past six months and climbed 33% in September alone.
That performance marks the best month since November 2024, when the stock surged after Donald Trump’s election victory.
At the time, investors expected Tesla would benefit from CEO Elon Musk’s alignment with the incoming administration.
While the Trump-Musk relationship later cooled and federal EV purchase credits were rolled back, investors have shifted focus to Tesla’s AI ambitions, particularly self-driving technology and robotics.
If Tesla shares close September at or above $461.24, up 4.1% from Monday’s close, it would rank as one of Tesla’s ten best months on record.
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