Wedbush points to demand surge for Tesla in China

(Seeking Alpha) – Wedbush Securities is out with a late forecast on Tesla (NASDAQ:TSLA) Q3 deliveries.

Ives says deliveries are “likely” in the +140K range vs. 136K consensus estimate (121K Model 3/Y).

“The clear standout this quarter yet again is the massive underlying demand coming out of China as we have seen demand surge in China for Model 3’s in this key region with Giga 3 firing on all cylinders heading into year-end.”
The strong end to the quarter could put the bottom-line in the area code of $0.55-$0.60 of EPS, according to Ives. “Another major feather in the cap for Musk & Co. in this soft macro backdrop with competitors across the board struggling to hit numbers,” he notes.

Looking further ahead, Ives points to the increase in leverage on the horizon with the Giga 3, as well as price cuts stimulating demand as the macro starts to improve and the lockdown conditions ease globally

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