Tesla stock (NASDAQ: TSLA) continued its rally on Wednesday, notching an eleventh straight session of gains after Goldman Sachs raised its price target for the electric vehicle giant.
Tesla stock has been on a winning streak since the days leading up to the announcement of its second-quarter production and delivery numbers, which beat analysts’ expectations. This streak of gains has propelled Tesla’s stock back into positive territory for the year.
Tesla in Strong Position as EV Market Grows
Despite intensifying competition in the electric vehicle sector, analysts have maintained a positive outlook on Tesla, citing its robust customer base, diverse product offerings spanning vehicles, software, and charging infrastructure, as well as upcoming plans to launch more affordable models by next year.
In a recent note, Goldman Sachs analysts highlighted the potential impact of a lower-cost Tesla model on the company’s market share. The analysts noted that approximately half of the car-buying market seeks vehicles priced at or below $30,000. They emphasized that such a move could enhance Tesla’s competitiveness against Chinese rivals offering cheaper electric alternatives.
The analysts also highlighted Tesla’s advancements in self-driving software and the imminent launch of its robotaxi service next month as growth areas for the company. However, they cautioned that it would take time for autonomous taxis to become widely available and for traditional Tesla vehicles to achieve full autonomy.
Market Conditions to Weigh on Near-Term Earnings
In light of these factors, Goldman Sachs raised its price target on Tesla from $175 to $248, although this remains below the current trading price. The firm maintained a neutral rating on Tesla, citing expectations of near to intermediate-term earnings pressure amid potentially softer market conditions.
The analysts wrote,
“While we continue to believe that Tesla is well positioned for longer-term growth given its strong position in the EV and clean energy markets. We expect weaker market conditions to weigh on earnings in the near to intermediate term.”
Tesla plans to report its earnings after the closing bell on July 23, a highly anticipated event that could provide further insights into its robotaxi debut planned for August 8.
Tesla Stock (NASDAQ: TSLA) Price Action
TSLA stock rose 0.35% on Wednesday, closing at $263.26, marking a 13.84% increase for the week. The trading volume was 128,519,432 shares, significantly higher than the average daily volume of 93.96 million.
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