Why Prominent Tesla Analyst Sees The EV Stock Falling Today

Zinger Key Points
  • Tesla third-quarter deliveries, though a record number, underwhelmed relative to expectations.
  • The AI Day announcements also point to long-term opportunities than near term.

Tesla Inc. TSLA shares are expected to react to a few catalysts in the unfolding week, and an analyst is not too optimistic about their performance on Monday.

What Happened: Future Fund’s Gary Black, a Tesla bull, said in a tweet that he expects the stock to fall on Monday as it remains on track to react to a few catalysts.

Third-quarter deliveries came in at 344,000 compared to Wall Street’s expectations of 358,000, the fund manager noted. He suggested that the Street will likely overlook the management’s explanation of smoothing out quarter-end deliveries to reduce transit costs.

The AI Day 2022 held late on Friday wouldn’t have much of an impact on the stock, added Black.

He also noted that the deposition of Tesla CEO Elon Musk in the Twitter Inc. TWTR lawsuit is slated for Oct. 6 and 7.

See Also: Tesla Analyst's 6 Takeaways From AI Day 2022: Optimus A Long Shot, FSD Approval To Take Years, Traditional Autos In Trouble And More

Among the other catalysts that could impact Tesla shares are the China September sales data due this weekend and the U.S. Labor Department’s non-farm payrolls report due on Friday, Black said.

Why It’s Important: Tesla shares have pulled back about 25% in the year-to-date period, weighed down by macroeconomic factors, production disruption seen at the company’s Giga Shanghai plant in the second quarter and the noise surrounding Musk’s attempt to buy Twitter.

The 3-for-1 split implemented in late August has done little to revive the stock's fortunes.

Given the company’s multiple growth opportunities, such as Optimus bot, robotaxis and a wider FSD rollout, most analysts are bullish on the stock over the long term.

Price Action: Tesla closed Friday’s session at $265.25, down 1.10%, according to Benzinga Pro data.

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Posted In: Analyst ColorNewsGlobalAnalyst RatingsTechTrading Ideaselectric vehiclesElon MuskEVsGary Black
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