Baird reiterated their Outperform rating on Tesla (NASDAQ:TSLA) with a $300.00 price target on the stock as the firm's analysts continue to believe the electric automaker is “the best positioned among its peers” and recommend the company as a top pick for 2H23.
TSLA reduced prices for the Model S/X in various regions in late August and again in early September as part of the Model 3 refresh launch. Even though they lowered prices for their premium lineup, the prices for the Model 3/Y have remained stable in key markets, which could potentially keep the company's profit margins flat.
Initial reviews and test drives of the updated Model 3 have been favorable, and changes in delivery wait times indicate strong demand. Deliveries are set for early Q4, and there are reports of ships carrying the first units to the European market.
Baird predicts that China will be the second market to receive the Model 3 after Europe, also in Q4. Despite negative sentiment surrounding the broader Chinese economy for most of Q3, data from the China Passenger Car Association (CPCA) shows approximately 64,000 and 84,000 deliveries in July and August, respectively.
Shares of TSLA are down 0.75% in early trading Tuesday morning.