Tesla Inc TSLA shares have soared since the company beat second-quarter delivery estimates from analysts.
Here's a look at what analysts are saying about deliveries, as well as shares up 35% over the last month.
The Tesla Analysts: Guggenheim analyst Ronald Jewsikow had a Sell rating and raised the price target from $126 to $134.
Truist analyst William Stein had a Hold rating and $162 price target.
Morgan Stanley analyst Adam Jonas had an Overweight rating and $310 price target.
Wedbush analyst Dan Ives has an Outperform rating and raised the price target from $275 to $300.
RBC Capital Markets analyst Tom Narayan had an Outperform rating and $227 price target.
Guggenheim on Tesla: A five percent decline in deliveries "never looked so good," Jewsikow said in a new investor note.
"Remain SELL with demand headwinds persisting," Jewsikow said.
The analyst said strong energy storage figures could help drive positive earnings per share revisions for Tesla.
Jewsikow said the deliveries that beat estimates were a "materially positive surprise."
The analyst said Tesla stock is likely moving higher more from the energy storage figure than the delivery figure.
"(Vehicle) demand is pulled forward and new demand must be created in 3Q and beyond, which has proven challenging over the last 18 months."
The analyst said production cuts, market share loss in China and Europe tariffs are all negative catalysts to watch in the second half of the year.
Truist on Tesla: Lower production reported by Tesla could signal inventory normalization, Stein said.
"We expect reduced production to help normalize inventory levels," Stein said.
The analyst said Tesla's press release didn't give a reason for the lower production numbers. Inventory levels stood at 82.0 days on the balance sheet in the first quarter, the company's highest level since 1Q20, the analyst noted.
"We expect balance sheet inventory to fall to ~70 days on the 2Q print still slightly elevated but much more inline with recent historical levels."
Morgan Stanley on Tesla: Tesla's delivery beat in the second quarter is one of few positive automotive sector surprises in 2024, Jonas said.
The analyst said it will be tough for Tesla to match last year's delivery number even after the second-quarter beat.
Jonas highlights the 9.4 GWh energy storage figure, which was almost two times greater than his forecast.
"Adam states that as Gen AI acceleration spurs a multigenerational increase in energy demand, electricity generation, and data center investment, he believes investors will begin to pay more attention to Tesla Energy," a Morgan Stanley note said.
Jonas assigns a value of $36 per share for Tesla's Energy segment, worth around $130 billion. The analyst said Tesla can benefit from increased investment in the U.S. electric grid thanks to the artificial intelligence boom.
Wedbush on Tesla: The electric vehicle company got its "mojo back" in the second quarter and Ives sees the growth story returning for Tesla.
"After a very choppy start to 2024 for Musk & Co. we believe the Tesla demand story has made a significant turn for the positive with stronger than expected 2Q deliveries this morning market a "major turning point' in the Tesla bull case story," Ives said.
The analyst sees price cuts behind the company and demand stabilization coming.
"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.”
RBC on Tesla: Tesla Energy record figures draw praise from Narayan.
"What could have been behind the strength in Tesla's energy storage business in the quarter?" Narayan asked in a new investor note.
The analyst said solar battery storage is rising and demand is increasing.
"Increasing renewable penetration has created periods in some markets where electricity prices are negative during sunny and windy days and in the thousands of dollars per MWh when solar and wind are unavailable and grid demand is high."
Narayan said the dynamic could lead to increased battery use and the spread being considered.
"The implication here is that Tesla is either gaining market share or the entire market is growing dramatically in 2024."
The analyst said it could be a combination of both.
TSLA Price Action: Tesla shares are up 6.24% to $246.39 on Wednesday versus a 52-week trading range of $138.80 to $299.29. Tesla stock is down 1.9% year-to-date in 2024, but has gained over 35% in the last month.
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Photo: Tesla 4680 battery via Shutterstock
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