Tesla (NASDAQ: TSLA) stock jumped in early Monday trade as Wedbush maintained a bullish stance ahead of the second-quarter delivery report.
Wedbush has reiterated an Outperform rating for Tesla (NASDAQ: TSLA), maintaining a steady price target of $275. The firm anticipates positive developments ahead for the electric vehicle manufacturer, highlighting a favorable risk/reward scenario for investors.
Wedbush highlighted the market’s anticipation surrounding Tesla’s second-quarter delivery numbers. Tesla plans to release these numbers early this week. Despite a challenging first half of the year marked by softer demand for electric vehicles, there are indications of a recovery, particularly in the critical Chinese market. Wedbush analysts noted that a “mini rebound” in the second quarter could enable Tesla to approach the Street’s estimates of 435,000 units. However, some whisper numbers suggest a slightly lower range of 415,000 to 420,000 units.
Moreover, the firm pointed out that investors are heavily focusing on Tesla’s performance in the latter half of the year, expecting a recovery in unit sales, price stabilization, and continued growth in China. Additionally, they anticipate the upcoming Tesla Robotaxi Day on August 8th will significantly influence the company’s trajectory and investor sentiment.
Wedbush’s analysis also highlighted recent market trends, indicating Tesla’s pricing has stabilized following previous rounds of price cuts. May and June have shown demand improvement in China, with consumers responding positively to signals indicating no imminent major price reductions. This stabilization in pricing, coupled with a rebound in demand, suggests a positive development that could bolster Tesla’s sales in the region.
Tesla (NASDAQ: TSLA) Stock Price Action
As of 09:54 a.m. (Eastern Time) Monday, TSLA stock traded at $206.76, marking a 4.49% increase compared to the previous trading session.
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