Connect with us

Bussiness

Tesla Approaches Highest Share Price of 2024 as Analysts Raise Price Targets

Published

4 months ago

on

Tesla Approaches Highest Share Price of 2024 as Analysts Raise Price Targets

Key Takeaways

  • Tesla shares surged again Wednesday as analysts raised price targets for the stock after second-quarter deliveries beat expectations.
  • Tesla shares are approaching their highest point of the year, and have risen almost 25% this week alone.
  • Wedbush analysts raised their price target for Tesla and called it “the most undervalued AI play” on the market ahead of its planned debut of an autonomous “robotaxi” next month.

Tesla (TSLA) shares are approaching their highest price of the year as a rally for electric vehicle (EV) stocks extended into Wednesday, with several analysts raising price targets for the company after its second-quarter deliveries surpassed expectations.

Bank of America and Wedbush Securities analysts raised their price targets to $260 and $300, respectively, up from previous marks of $220 and $275. J.P. Morgan analysts, however, were less optimistic about the deliveries numbers, maintaining an “underweight” rating and price target of just $115.

Q2 Deliveries a Positive Sign, Wedbush and BofA Say

Demand for electric vehicles appears to be stabilizing across the globe after dipping earlier in 2024, Wedbush analysts wrote in a Tuesday note, adding that Tesla’s deliveries figures marked a “major turning point” after a “very choppy start” to the year.

Bank of America analysts wrote Tuesday that “the increasing number of more affordable offerings this year and going forward should drive EV volumes higher.”

Deliveries data from some of Tesla’s competitors including Rivian (RIVN) in the U.S. and a number of Chinese rivals this week also surpassed expectations, suggesting the EV market is recovering.

Tesla ‘Most Undervalued AI Play in Market’

Wedbush analysts also said they continue to believe that Tesla is more of an artificial intelligence (AI) and robotics firm than a traditional car company, thanks to its projects like fully automated driving software, robotaxis, and AI-powered robots.

“The key for Tesla’s stock is the Street recognizing that Tesla is the most undervalued AI play in the market in our view with a historical Robotaxi Day ahead for Musk and Tesla on August 8th that will lay the yellow brick road to FSD and an autonomous future,” Wedbush analysts wrote.

Tesla shares closed up 6.5% Wednesday at $246.39 after briefly touching $248.35, their highest point since January 2, when they hit $251.25. The stock was the third-biggest gainer on the S&P 500 after leading the index both Monday and Tuesday.

Related Topics:
Continue Reading