Schaeffer's Top Stock Picks for '25

Tesla Stock Attracts Bullish Attention After Record Deliveries

At least three firms hiked their price targets in response to the news

Deputy Editor
Oct 4, 2021 at 11:12 AM
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Tesla Inc (NASDAQ:TSLA) announced over the weekend it delivered 241,300 electric vehicles in the third quarter, a quarterly record that blew past analyst analysts' estimates of 220,900 deliveries. That number also represents a 73% increase for  the same quarter last year, and trounces the number of deliveries China-based competitor Nio (NIO) just reported. Plus, the tech name has officially set a record of 627,350 deliveries so far in 2021, which is 26% higher than the full-year record of 499,550 deliveries set in 2020.  

No fewer than three bull notes were dished out for Tesla stock following the news, the largest of which came from RBC, which raised its price target to $755 from $745. These firms join a split brokerage bunch, with 12 of the 23 analysts in coverage calling TSLA a "hold" or "strong sell," compared to 10 "strong buy" or better ratings.

Call activity has ramped up in response. So far, 440 calls have crossed the tape, nearly double the intraday average, versus 262,000 puts. The most popular by far is the weekly 10/8 800-strike call, followed by the 820-strike call in the same series, with new positions being opened at both.

Now looks like an ideal time to join these options traders, seeing as TSLA premiums can be had for a bargain. The equity's Schaeffer's Volatility Index (SVI) of 46% stands higher than just 16% of annual readings. This means options traders are pricing in low volatility expectations for Tesla stock at the moment. What's more, TSLA's Schaeffer's Volatility Scorecard (SVS) ranks at 81 out of 100, indicating the equity has exceeded options traders' volatility expectations of the past year -- a boon for buyers. 

Last seen up 1.7% to trade at $788.50, Tesla stock earlier surged above the $800 level for the first time since February. What's more, the equity has support from the 200-day moving average, as well as the 40-day moving average. Fresh off its fourth-straight monthly win, TSLA boasts a 12% year-to-date lead.

 
 

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