Bears may consider betting against Tesla (TSLA) after the company posted weak automobile deliveries in Q3. However, TSLA stock has strong bullish momentum.
The company reported deliveries of 462,890. This is up from 435,059 last year. The stock is vastly outperforming Rivian Automotive (RIVN). Stock markets are more bullish on the Tesla Cyber truck than Rivian’s core product.
Markets are looking ahead to price in Tesla’s growth outside of the EV market. It is holding the “We, Robot” robotaxi launch on October 10. CEO Elon Musk is unlikely to have a finished product. Just as Apple (AAPL) announced the latest iPhone 16 without AI-ready, Tesla may do the same.
Watch out for a Cybercab prototype, which is a two-door sedan that is similarly sized to the Model 3. Musk might give markets insight into the addressable market of the robotaxi.
After years of delays and slashing prices of FSD to as low as $4,500, Tesla may announce unsupervised self-driving at the event.
Markets are acting as if Tesla will have multiple announcements. Should it fail to impress the automotive community, TSLA stock risks selling off.
Your Takeaway
Markets moved away from the Tesla growth narrative. Without generous government subsidies and a wary consumer unwillingness to spend, Tesla stock potentially peaked. For now, the stock remains an attractive core holding for investors.
