Tesla (TSLA) posts its strongest-ever quarter for deliveries, prompting a veteran analyst to predict a multi-trillion-dollar valuation for the electric vehicle maker.
In a new press release, the company reports production of 447,000 vehicles and deliveries of 497,000 in the third quarter of this year, alongside a record 12.5 GWh of energy storage deployments.
Deliveries shattered Wall Street estimates of about 443,000.
News of the firm’s record-breaking quarter prompted Dan Ives, Wedbush Securities’ global head of technology research, to call Tesla one of the top AI plays in the coming years.
“Look the main thing is my view is on the autonomous and robotics. I think this now when it comes to it’s going to be one of the best AI plays over the next few years. That’s why we think it’s going to be a $3 trillion market. But if you look at the demand, the demands turn around. I mean, this is a bounce-back quarter that shows, yes, still more work to do. But this is now setting up for what I believe is going to be a historical 2026 because the AI revolution now comes Tesla.”
The TSLA bull says the massive valuation comes from his belief that the firm is now positioned to dominate the world with its full self-driving (FSD) vehicles. He also highlights Tesla’s robotics project Optimus as another catalyst that could send TSLA flying.
“Today, let’s call it 15% have full self-drive in terms of FSD. We think that’s going to go to 50% over the next few years. So from a margin perspective, from a software perspective, that’s going to be a game changer alone.
In terms of autonomous, it’s our view, 80% of the autonomous world is going to be Tesla in terms of globally. So when you look over the next few years, you’re talking about, let’s say, 2 million vehicles. We’re talking about eventually you’ll begin to have 4, 5, 6, 7 million vehicles.
I could argue that it doesn’t even include robotics in terms of Optimus. That together could be more than the value of the company today. So that’s our view. What’s happening in this Tesla story, is that the AI revolution, especially now with Musk back to being a wartime CEO, I mean, I think front and center, that’s where we think $600 is probably conservative.”
Despite the record numbers, Tesla shares fell 5.11% to $436.
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