Tesla (TSLA) shares are nearing their peak for the year as a rally in electric vehicle (EV) stocks continued into Wednesday, bolstered by Tesla’s second-quarter delivery figures surpassing expectations. Several analysts have raised their price targets for the company in response to the positive news.
Bank of America and Wedbush Securities increased their price targets to $260 and $300, respectively, up from previous estimates of $220 and $275. However, J.P. Morgan analysts maintained a more cautious stance, retaining an “underweight” rating with a price target of $115.
Wedbush analysts noted in a Tuesday note that demand for electric vehicles appears to be stabilizing globally, following a volatile start to 2024. They described Tesla’s delivery figures as a “major turning point” after a challenging beginning to the year. Bank of America analysts highlighted the impact of more affordable EV offerings entering the market, which they expect to drive higher EV volumes.
The positive momentum extends beyond Tesla, with competitors like Rivian (RIVN) and several Chinese EV manufacturers also reporting better-than-expected delivery data this week, signaling a broader recovery in the EV sector.
Wedbush analysts emphasized Tesla’s positioning as an artificial intelligence (AI) and robotics leader rather than just a car manufacturer, citing projects such as fully automated driving software, robotaxis, and AI-powered robots. They asserted that Tesla is undervalued as an AI play, anticipating significant market recognition ahead of Tesla’s upcoming Robotaxi Day on August 8th.
Tesla’s shares closed Wednesday up 6.5% at $246.39, briefly reaching $248.35, their highest levels since January 2nd when they peaked at $251.25. The stock ranked as the third-largest gainer on the S&P 500, following leading performances earlier in the week.
