HSBC raises Tesla price target to $157 from $125, keeps 'Reduce' rating
HSBC raised its Tesla price target to $157 from $125 after the Q3 delivery beat, but kept its bearish 'Reduce' rating — citing continued weakness in Tesla's energy storage business, a sign Wall Street's caution hasn't fully lifted.
Tesla shares jumped after blowout Q3 deliveries, but Wall Street's reaction was mixed — and HSBC's note captured that split perfectly.
HSBC analyst Michael Tyndall raised his price target to $157 from $125 while maintaining a 'Reduce' rating. He acknowledged the production beat but pointed to weakness in Tesla's energy storage business — Q3 deployments came in at 13.7 GWh, missing consensus by 19% and HSBC's own forecast by 24%.
The same day, CNBC's roundup of Wall Street calls showed a very different read elsewhere: Canaccord reiterated its Buy rating, arguing the delivery beat "steadies nerves," but that the stock is ultimately "a bet on other things: robots; some arriving on 4 wheels, and others on hands and feet."
Tesla shares, trading at $370.59, remain well above HSBC's new target — underscoring how wide the gap in Wall Street's valuation views remains heading into the Oct. 21 earnings call, where margins and the energy business will be in focus.
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