Deutsche Bank increased its price target on Tesla (NASDAQ: TSLA) to $435 from $345 while maintaining a Buy rating, citing stronger-than-expected third-quarter deliveries and improved investor sentiment following CEO Elon Musk’s renewed focus on key initiatives.
The firm said Tesla was poised to benefit from its leadership in embodied AI, with Musk prioritizing the robotaxi and Optimus projects. Analysts forecast third-quarter deliveries of 461,500 units, above consensus of 433,000, supported by the launch of the Model Y L in China and U.S. pre-buy demand ahead of expiring EV incentives.
The forecast implied flat growth year-on-year but a 20% sequential increase, with 20% gains in China and North America offsetting declines in Europe. Full-year deliveries of 1.6 million still appeared achievable, according to the firm.
Deutsche Bank projected fourth-quarter deliveries of about 409,000 units and anticipated margin pressure from lower volumes and tariff costs, translating to EPS of $1.53, below the current $1.74 consensus.
