Despite volatility, competition, and controversy, 5-star investor Victor Dergunov sees record Q3 deliveries and Musk’s deep involvement as strong catalysts for TSLA’s next leg up.
Tesla’s Q3 Delivers a Turnaround Moment
Tesla (NASDAQ: TSLA) has roared back in recent months, gaining over 90% in share price over the past six months, following a rocky start to the year.
- In Q3, Tesla reported 497,099 deliveries, its highest quarterly total ever, reversing a trend of year-over-year declines.
- Analysts project revenue of $26.58 billion and an EPS of $0.55, marking sequential improvements.
These results raise the question: Is Tesla back in long-term growth mode, or is this a short-term rebound?
Elon Musk’s Commitment Fuels Investor Confidence
According to Victor Dergunov, a top-ranked investor, Tesla’s renewed momentum is more than just a number—it’s tied directly to CEO Elon Musk’s personal engagement.
- Musk’s recent $1 billion stock purchase signals strong confidence in the company’s direction.
- He’s also eyeing a potential $1 trillion compensation package, tying his financial success to Tesla’s performance.
Dergunov believes Musk’s hands-on involvement, from AI to energy to EVs, makes a compelling case for long-term investors willing to stomach volatility.
Dergunov’s Take: Strong Buy With Bold Targets
Despite known risks—including intensifying EV competition, uncertain AI monetization, and Musk’s unpredictable political influence—Dergunov has upgraded Tesla to a Strong Buy.
He cites three core drivers of this conviction:
- Record-breaking deliveries indicate solid EV demand recovery.
- AI and Full Self-Driving (FSD) technologies represent untapped revenue streams.
- Tesla Energy continues to gain relevance as global interest in battery storage and solar grows.
“A 12-month price target of $650, and a long-term target of $2,500–$3,500 are realistic,” says Dergunov, while acknowledging execution and valuation risks.
Model Y Refresh, AI, and FSD Could Drive Next Growth Wave
Tesla’s Model Y refresh has sparked renewed consumer interest and could further lift delivery volumes in Q4 and beyond.
- Meanwhile, Tesla is quietly expanding its AI infrastructure, with Dojo supercomputers aimed at training autonomous driving and robot capabilities.
- FSD (Full Self-Driving) adoption remains slow but is still seen as a potentially transformative product, especially if Tesla can monetize it at scale.
Dergunov believes these innovations give Tesla multiple growth levers, particularly as it diversifies beyond car manufacturing.
Wall Street Remains Divided
While Dergunov is bullish, Wall Street consensus remains cautious.
- TSLA currently holds a Hold (Neutral) rating.
- The 12-month average price target of $365.82 implies a potential 17% downside from current levels.
This divide between retail enthusiasm and analyst skepticism reflects Tesla’s volatile valuation and high expectations—a story investors have seen before.
Final Thoughts: High Risk, High Reward
Tesla is no stranger to volatility, and investors like Dergunov recognize the risks in execution, competition, and valuation. But with Musk doubling down, record Q3 performance, and emerging growth pillars in AI and energy, some see this moment as the beginning of Tesla’s next act.
For long-term believers, the road may be bumpy—but the potential reward is massive.