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UBS Adjusts Tesla Delivery Outlook
UBS forecasted that Tesla will deliver approximately 475,000 vehicles in the third quarter of 2023, surpassing analysts’ consensus estimates. This marks a potential return to year-over-year growth, following deliveries of over 384,000 vehicles in the second quarter, down from about 444,000 in the same period last year.
The expected increase in deliveries is attributed to two main factors: the impending September 30 deadline for a $7,500 federal electric vehicle tax credit and the recent redesign of the Model Y, Tesla’s best-selling vehicle. The redesigned Model Y began rolling out earlier this year, enhancing buyer interest just as tax credit-driven demand is anticipated to rise.
Headwinds remain, including the possibility of demand shifting from fourth to third quarter due to the tax credit, competitive pressures in markets like China and Europe, and challenges in Tesla’s self-driving technology. Investors are advised to note the company’s valuation, which sits at approximately 250 times earnings.
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