You’re here (TSLA) received another increase in its price target on Monday, following a series of similar actions by companies last week after the electric vehicle giant announced record global deliveries.
X
Jefferies analyst Philippe Houchois raised the company’s TSLA price target to 265 from 185 on Monday. That’s about 3% below Tesla’s Friday closing price of 274.43.
Last week, many companies, including Goldman Sachs and JPMorgan, raised their price targets after Tesla shipments jumped to 466,140 in the second quarter, topping the first quarter record of 422,875 and the record of 405,278 of the fourth quarter. That easily exceeds estimates of around 445,000, according to FactSet.
Jefferies also maintained a holding rating on TSLA. Houchois said Jefferies joins the “consensus view” that Tesla’s second quarter will be a trough for automotive gross margins. The analyst added that recent developments also suggest a shift in valuation drivers, with Tesla’s focus on AI-based autonomy “standing out”.
Tesla stock edged down about 1% to 271.59 on Monday in market trades.
On Friday, Morgan Stanley analyst Adam Jonas told investors to exercise caution when looking at the EV space.
“Electric vehicle names rose sharply in Q2 due to risk reversal, overall positive deliveries and other factors including funding milestones,” Jonas wrote.
“We caution investors that the fundamentals of the electric vehicle market (supply/demand) may resemble those of the solar industry, which herald high growth and disappointing returns,” he said.
Tesla battery workers fired
As Tesla beat analysts’ second-quarter delivery expectations early last week, Bloomberg reported on Friday that the company may lay off some battery production workers at its Shanghai plant. It’s unclear how many workers could be laid off, or the specific reasons for the layoffs, according to Bloomberg.
Meanwhile, Mexican officials said all permits for Tesla’s new factory in the country are on track, according to local reports. Officials told the press that there was no set date for the start of construction, but groundbreaking could begin “at any time”.
Tesla executives confirmed plans to build a factory in Mexico in March. The company’s long-awaited next-generation vehicle will be built in Giga Mexico, according to Tesla.
The Nasdaq 100 will reduce the dominance of the “Magnificent Seven”
Tesla Stock
TSLA shares are up 122% in 2023 and 169% from their January 6 low. However, Tesla stock is still well below its all-time high of 414.50, reached in November 2021.
On June 2, Tesla pulled out a buy point of 207.79 from a double bottom cup or base. It was part of a record 13-game winning streak for Tesla, with the last 12 having above-average volume. Stocks paused in late June amid the general market pullback, but rebounded near the 21-day lines.
TSLA jumped 6.9% to 279.82 on July 3 after strong second-quarter delivery numbers, erasing a brief break to hit a nine-month high.
Tesla releases its second quarter financial statements on July 19.
Please follow Kit Norton on Twitter @KitNorton for more coverage.
YOU MIGHT ALSO LIKE:
Gain an edge in the stock market with IBD Digital
Stock Tesla in 2023: the electric vehicle giant faces different challenges in its two megamarkets
Tesla is skyrocketing, but is it a buy?
Unions keep pressure on Starbucks and Amazon
9 stocks with strong earnings growth over the next year