Tesla recently reported its Q3 delivery figures, which received mixed reactions from investors. The company manufactured 430,488 vehicles in the quarter and delivered 435,059 units. Yet, these figures didn’t meet the market’s anticipation, which had foreseen approximately 455,000 deliveries. In the previous quarter, Q2, Tesla outperformed expectations by delivering 466,140 units, surpassing the estimated 445,000.

The breakdown of deliveries shows that Model Y and Model 3 deliveries reached 419,100 units, below the estimated 441.1k, while Model X and Model S units amounted to 16,000, lower than the expected 18.5k. Tesla attributed this delivery gap in Q3 to extended downtime in its Austin and Shanghai facilities. CEO Elon Musk had previously warned about these shutdowns needed for factory upgrades.

Despite this setback, Daniel Ives, an analyst at Wedbush, sees a positive side. He believes that the roughly 20,000 units that missed delivery targets in Q3 could be made up in Q4. Additionally, Ives sees these factory upgrades as part of Tesla’s broader expansion plans, including launching new models and scaling up production.

Ives is very optimistic about Tesla’s future, saying that with past price cuts stabilizing prices, the company is entering a new phase of global growth. The Model 3 refresh is gaining prominence in China, and Cybertruck production is set to start soon.

To meet its annual target of delivering 1.8 million vehicles, Tesla needs a robust performance in Q4. Although the company fell short of Wall Street’s expectations in Q3, Daniel Ives maintains an optimistic outlook for Tesla in the fourth quarter and beyond. He believes that brighter days lie ahead for the company.

Ives continues to rate Tesla shares as “Outperform” (Buy) with a price target of $350. This target implies a potential 36% increase in Tesla’s stock price over the next 12 months, showing his confidence in the company’s growth prospects.

Tesla has always been a subject of diverse opinions on Wall Street, as reflected in its “Moderate Buy” consensus rating. This rating comprises 12 Buy recommendations, 13 Holds, and 4 Sells. The average target price for Tesla’s stock stands at $264.56, suggesting a modest 2.6% growth from its current trading levels. However, the electric vehicle industry’s substantial growth potential and Tesla’s continuous innovations ensure that it remains a stock closely monitored and debated in the market.