Can the Tesla share price beat September’s 22% climb in October?

All the techie attention seems to have drifted away from the Tesla share price at the moment. But October could see that change.

| More on:
Young Woman Drives Car With Dog in Back Seat

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

The Tesla (NASDAQ: TSLA) share price has had a fairly rocky ride in 2024 so far. And it’s still some way down from its heights of 2021.

But, from the end of August to market close on the last day of September, Tesla rose by a whopping 22%. Can it go still further in October?

Deliveries

Tesla just released its Q3 delivery figures on 2 October. And these showed a 6.4% rise on the same quarter a year earlier. It’s the first quarterly increase this year, so that’s good, right?

Well, the Tesla share price fell 3.5% on the day, having dipped even lower before market close. At the time of writing the day after, it seems to be settling around $249.

The electric vehicle (EV) maker delivered 462,890 vehicles in the three months to 30 September. But Wall Street had expected more than 463,000.

That’s not much of a miss. But these days, it seems Nadaq stocks are supposed to blow through forecasts every time. And if they don’t then they’re a failure, and that can be enough to drive shareholders to dump a stock.

Chinese demand

EV hopes for the near future appear to be pinned in Chinese demand at the moment. It comes after the government in Beijing doubled the subsidies for buyers who switch to an EV or hybrid.

But the economic relationship between China and the US is not exactly sweetness and light right now. And it might even get tougher, depending on who next occupies the White House.

Tesla is still the world’s biggest maker of EVs, staying ahead of its big rivals. China’s BYD isn’t too far behind, though, delivering 443,426 vehicles in its third quarter.

Robotaxi

This sales update isn’t the only thing on the Tesla calendar this month. The long-awaited robotaxi event is scheduled for 10 October.

Elon Musk reckons it’s going to be a big day, calling it “one for the history books“. He would think so, of course. But it really could be what Tesla needs to get back the attention that seems to have drifted elsewhere.

To gauge the likely size of the event, dubbed ‘We, Robot’ in the invites, the stage is set for the Warner Bros. Discovery studios in Los Angeles.

On the technology front, I think this could be a real blow-your-socks-off thing.

Be wary

But it could be a long way from a technically successful robotaxi launch, to a significant boost for bottom-line profits. I would not make a buy or sell decision on a single event like this.

On valuation, Tesla is quite tricky to work out. Forecasts put the price-to-earnings (P/E) at a sky-high 130 for the current year.

If they’re right on earnings growth, that could drop to 60 by 2026, though. And if that kind of growth continues, it could come down quite quickly.

Where might the Tesla share price go in October? I think that could be down to gut feeling more than anything more rational.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Alan Oscroft has no position in any of the shares mentioned. The Motley Fool UK has recommended Tesla. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Person holding magnifying glass over important document, reading the small print
Investing Articles

Just released: our top 3 small-cap stocks to consider buying in October [PREMIUM PICKS]

Small-cap shares tend to be more volatile than larger companies, so we suggest investors should look to build up a…

Read more »

Investing Articles

How I’d use an empty Stocks and Shares ISA to aim for a £1,000 monthly passive income

Here's how using a Stocks and Shares ISA really could help those of us who plan to invest for an…

Read more »

Investing Articles

This FTSE stock is up 20% and set for its best day ever! Time to buy?

This Fool takes a look at the half-year results from Burberry (LON:BRBY) to see if the struggling FTSE stock might…

Read more »

Investing Articles

This latest FTSE 100 dip could be an unmissable opportunity to pick up cut-price stocks

The FTSE 100 has pulled back with the government’s policy choices creating some negative sentiment. But this gives us a…

Read more »

A young woman sitting on a couch looking at a book in a quiet library space.
Investing Articles

As the WH Smith share price falls 4% on annual results, is it still worth considering?

WH Smith took a hit after this morning’s results left shareholders unimpressed. With the share price down 4%, Mark Hartley…

Read more »

Investing Articles

The Aviva share price just jumped 4.5% but still yields 7.02%! Time to buy?

A positive set of results has put fresh life into the Aviva share price. Harvey Jones says it offers bags…

Read more »

Investing Articles

Can a €500m buyback kickstart the Vodafone share price?

The Vodafone share price has been a loser for investors in recent years, and the dividend has been cut. We…

Read more »

Frustrated young white male looking disconsolate while sat on his sofa holding a beer
Growth Shares

3 mistakes I now avoid when choosing which growth stocks to buy

Jon Smith runs through some of the lessons he's learnt the hard way over the years about what to look…

Read more »