Tesla (NASDAQ: TSLA) is looking to push production of the Model Y and Model 3 electric vehicles (EVs) much higher in Q4 2022 and continue the production ramp-up into 2023.
Earlier reports on leaked emails from the company showed the need for higher production numbers, which were partially fulfilled in China, where the firm delivered a record number of vehicles in September. In addition, Tesla was looking to double vehicle sales in Germany, an important market for the US EV producer.
If the production ramp-up goes according to plan, the global autos market’s projected growth will jump by a factor of 10 in 2023, considering a 50% production increase for the entire year.
Needless to say, the reevaluation of the stock would take place under such circumstances, which is why Q4 production and delivery numbers could be crucial for TSLA. Related 2022 Volatility Index strongly correlates to 2008 – relief rally in store? Senior ETF analyst warns theres nowhere to hide as Gold, S&P 500 fall on CPI data BlackRock (BLK) beats earnings – stock remains flat in premarket
Furthermore, sales of Tesla vehicles in Europe seem to be doing well, according to Troy Teslike, Twitter post.
Tesla sales in Europe are looking good. The chart shows year-to-date registrations in Europe at the end of September.
Europe sales are not going to be an issue in Q4 but there are some concerns about China and the US. pic.twitter.com/orMuhnNYfg— Troy Teslike (@TroyTeslike) October 6, 2022 TSLA chart and analysis
In the last month, TSLA has been trading in a wide range from $206.22 to $313.80, with price action falling heavily in the last few sessions. Meanwhile, technical analysis indicates a support line at $216.75 and a resistance zone from $221.73 to $223.78.
Volume has been considerably higher in the last couple of days while the share price remained below all moving averages; usually, a combination of strong volume and a large move down is a bad short-term sign. TSLA chart. Source: Finbold.com. See more stocks here.
Analysts rate the stock a moderate buy, with the average price in the next 12 months reaching $319.49, 44.10% higher than the current trading price of $221.72. Notably, out of 31 Wall Street analysts, 19 have a buy rating, 7 have a hold rating, and 5 have a none sell rating. Wall Street analysts price targets for TSLA. Source: TipRanks
Teslas future growth faces the prospects of slowing global economies, which might impact the firm’s bottom line. Though Tesla has dealt with them formidably, supply chain issues are another worry facing all automakers.
Finally, competition in the EV space is advancing fast, another factor to keep in mind when predicting Teslas future growth prospects.
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