![]() ![]() First, its rival Rivian impressed investors with strong Q3 production figures. ![]() Tesla’s stock rally may be due to two reasons. Worker strikes affecting the “Big 3” automakers could limit their supply, potentially benefiting competitors like Tesla. This indicates ongoing demand despite economic concerns and rising interest rates. auto sales were up 17% year over year ( YOY). Rivian, Tesla’s competitor, saw a significant surge in its stock today due to better-than-expected Q3 production figures. Despite an initial dip in share price and increased short interest, the stock remained relatively stable after the report, likely due to two factors. TSLA attributed this drop to “planned factory upgrades,” maintaining its full-year delivery estimate. On October 2, Tesla reported Q3 deliveries of just over 435,000 vehicles, missing Wall Street estimates by over 20,000 and down about 6% from Q2. Deliveries Numbers Don’t Inspire Confidence Lowered price targets before earnings indicate skepticism. ![]() Despite adjusted forecasts, recent delivery shortfalls raise concerns. Moreover, Sacconaghi suggests Tesla must excel in Q4 and possibly lower prices to meet 2023 delivery targets, impacting 2024. These combined reasons could potentially require price cuts next year. Specifically, he cited concerns about Tesla’s auto gross margins, lower volumes, discounts, weak demand, and a lack of new offerings. Toni Sacconaghi of Bernstein remains bearish with a “sell” rating and a $150 target. William Stein of Truist Financial suggests a “hold” with a $243 target. Goldman Sachs’ Mark Delaney lowered the target to $252, rating it a “hold”. JPMorgan’s Ryan Brickman maintains a “sell” rating with a $135 target, implying a 45% downside. TSLA stock is dropping, and Wall Street analysts are growing more pessimistic. The following expectations for October 18, as well as other updates, will give you needed insight about Tesla. Given recent disappointing deliveries numbers, a negative earnings report appears to be widely expected. Currently, it’s down nearly 2% at the time of writing on a volatile day of trading, indicating investors remain cautious on this name heading into its earnings print. On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.Tesla (NASDAQ: TSLA) faces a challenging Q3 earnings report, as the stock’s recent volatility and downward trend have raised concerns among investors.ĭespite some recent improvement, TSLA stock is facing challenges today, likely due to the Q3 deliveries report. Indeed, today’s price action with RKLB stock seems to indicate most investors feel this way. When insiders sell after a big surge, an implicit signal is sent that perhaps this stock is overvalued. Retail investors operating with less information than insiders don’t want to be left holding the bag. Insiders are privy to material non-public information, and, as such, when they make big transactions (such as a $20 million stock sale), investors have to ask which way is up. That said, the size and prominence of this transaction, as well as its timing (coinciding with a recent surge in RKLB stock) clearly has some investors concerned. Thus, with the intent or rationale unclear, the market as a whole often has difficulty digesting what to make of many insider sales. Executives often want to offload some shares to diversify their holdings, add another vacation home or simply bolster their personal balance sheets. In many cases, the market will often brush off insider transactions (even insider sales). Investor responses to insider transactions can vary. RKLB Stock Sinks on Insider Selling Activity Let’s dive into what this means for investors and why this is causing such a drop for Rocket Lab today. This sale would amount to a little less than $20 million at current prices, though it’s unclear what price the proposed sale will ultimately close at. News that Rocket Lab’s founder, Peter Beck, has reportedly filed to sell 3.6 million shares has investors in selling mode today. Investors priced in a key headline that is creating most of the consternation around this stock today. In early afternoon trading, RKLB stock plunged 9%. In today’s market, Rocket Lab (NASDAQ: RKLB) is among the top declining stocks on watch for a number of investors. ![]()
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