New data from Tesla, Inc. TSLA will send “bears into hibernation mode,” one analyst says, citing the car manufacturer’s record deliveries for the second quarter.
The Tesla Analyst: Wedbush analyst Daniel Ives maintained an Outperform rating and a $300 price target for Tesla stock following news that the company delivered 466,140 cars in June — up 83% year-over-year.
Market estimates expected deliveries to hover at around 445,900.
The Tesla Thesis: Tesla's strong second-quarter deliveries beat is proof to combat the narrative of a murky backdrop, Ives said in a note.
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“Tesla continues to play chess while other EV players are playing checkers and this was another trophy case quarter for Musk & Co. despite much skepticism from the Street the last few months and will create some fireworks for the bears on these robust number,” the analyst said.
Strong demand, achieved on the back of price cuts implemented early in 2023, and production efficiencies allowed for the massive deliveries beat this quarter, Ives said. The analyst sees Tesla staying on course to hit the 1.8-million-unit delivery guidance for the year.
The electric vehicle maker, according to the analyst, will see its margin bottom over the next one to two quarters and then ramp back up in the fiscal year 2024.
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"With this delivery beat, we believe the sum-of-the-parts story for Tesla is another step towards coming into play," the analyst said. Along with this, the "newly released supercharger network OEM deals, energy business, AI-driven autonomous path, unmatched battery ecosystem, and increased production scale/scope globally" add to the Tesla golden EV success story, he added.
The second-quarter delivery number was a "massive step in the right direction" and is a major positive for the bulls digesting these deliveries, Ives said.
Meanwhile, Deepwater Asset Management managing partner Gene Munster also chimed in on the Tesla numbers.
“This is the fastest growth rate since June of 2021,” Munster wrote on Twitter, noting how shares are up 20% since July 2021.
“Most impressive to me, the average growth of deliveries over the previous seven quarters was 50%,” Munster added. “This marks a measurable step-up in growth. Production growth rates were similar to delivery, suggesting inventory levels remained stable.”
Tesla Price Action: Tesla stock closed Friday's session up 1.66% at $261.77, according to Benzinga Pro data.
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