TSLA Inc.

(NASDAQ)
Back to all articles
Somewhat Bullish +45

Tesla Stock Rises Overnight After Musk Says 'Something May Come Of ...

AI partnership New factory Vehicle deliveries AI-generated analysis

🚀 Tesla shares rose 1% overnight after Elon Musk confirmed discussions with TSMC regarding potential cooperation on the Terafab chipmaking project.

🤝 Potential arrangements could see TSMC own and operate a Texas factory or provide technology and operational expertise to supplement Terafab's AI computing ambitions.

📈 Analyst Gene Munster expects 15% delivery growth next year, citing Tesla's value and FSD advantages as pressure points for traditional automakers.

💰 Morningstar maintained a $450 fair value estimate, implying 21% upside from current levels, while forecasting 10% delivery growth for the year.

🚗 Tesla delivered 486,532 vehicles in Q3, including 478,237 Model 3 and Model Y units, with energy storage deployments reaching 13.7 GWh.

⚠️ Q3 deliveries fell about 2% year-over-year due to the expiration of the U.S. $7,500 EV tax credit which previously pulled forward purchases.

📉 Tesla stock has lagged its Magnificent Seven peers by approximately 18% so far this year, making it the group's worst performer.

🤖 Analyst Gary Black noted that while deliveries beat consensus, unsupervised autonomy rollout has fallen short of management's guidance compared to Waymo.

📅 Tesla is scheduled to report third-quarter results after market close on Oct. 21, with analysts watching for updates on robotaxi and FSD version 15.

🔋 Energy storage deployments hit 13.7 gigawatt-hours in Q3, contributing to the company's broader growth beyond vehicle sales.

Bullish Signals
  • Tesla shares rose 1% overnight after CEO Elon Musk confirmed discussions with TSMC regarding potential cooperation on the Terafab semiconductor project.
  • Analyst Gene Munster expects 15% delivery growth next year, driven by Tesla's vehicle value and Full Self-Driving (FSD) advantages over traditional automakers.
  • Morningstar maintained a $450 fair value estimate, implying 21% upside from current levels, while forecasting 10% delivery growth for the year.
  • Tesla delivered 486,532 vehicles in Q3, including 478,237 Model 3 and Model Y units, with energy storage deployments reaching 13.7 GWh.
  • Analysts highlight the potential for Terafab cooperation to secure manufacturing capacity for Tesla's rising AI requirements through a partnership with TSMC.
Risk Factors
  • Q3 deliveries fell about 2% year-over-year due to the expiration of the U.S. $7,500 EV tax credit which previously pulled forward purchases.
  • Tesla stock has lagged its Magnificent Seven peers by approximately 18% so far this year, making it the group's worst performer.
  • Analyst Gary Black noted that while deliveries beat consensus, unsupervised autonomy rollout has fallen short of management's guidance compared to Waymo.
Full Analysis
Tesla shares rose approximately 1% overnight following confirmation from CEO Elon Musk that discussions are underway with Taiwan Semiconductor Manufacturing Co. (TSMC) regarding potential cooperation on the Terafab semiconductor project. The talks explore arrangements where TSMC could operate factories in Texas or provide technology and expertise to supplement Terafab's ambitions of producing one terawatt of computing capacity annually for Tesla, SpaceX, and other AI requirements. Analysts weighed in on Tesla's performance, with Gene Munster of Deepwater Asset Management expecting 15% delivery growth next year driven by vehicle value and Full Self-Driving (FSD) advantages. Morningstar maintained a $450 fair value estimate, implying 21% upside, while forecasting 10% delivery growth for the current year as the company aims to end two consecutive annual declines. Tesla reported third-quarter deliveries of 486,532 vehicles, including 478,237 Model 3 and Model Y units, though this represents a slight decline from the prior year quarter due to the expiration of the U.S. EV tax credit. While retail sentiment remains bullish on Stocktwits, the stock has lagged its Magnificent Seven peers by about 18% so far this year, with some analysts noting that unsupervised autonomy rollout has fallen short of management's guidance.