5 analysts discuss Tesla stock after Q2 deliveries beat By Investing.com (2024)

Tesla (NASDAQ:TSLA) on Tuesday reported its vehicle deliveries for the second quarter, showing a smaller-than-expected decline as aggressive price cuts and incentives helped boost sluggish demand.

The report propelled Tesla stock 10% higher on Tuesday, closing at the highest level in almost six months.

For the three months ending June 30, Tesla delivered 443,956 vehicles, a 4.8% decrease from the previous year but a 14.8% increase from the previous quarter. This exceeded Wall Street's average expectation of 438,019 vehicles, as estimated by 12 analysts polled by LSEG.

The deliveries included 422,405 Model 3 and Model Y units and 21,551 units of other models, such as the Model S sedan, Cybertruck, and Model X premium SUV. During this period, Tesla produced 410,831 vehicles.

Despite being slow to update its car lineup, especially compared to rivals in China who have introduced new affordable models, and facing high-interest rates that dampen demand, Tesla's overall performance was stronger than expected.

While Tesla does not provide a regional breakdown of sales, some analysts believe better-than-expected results in China and the United States contributed to the strong performance. In April, Tesla implemented another round of price cuts in key markets, including the United States, China, and Europe.

However, Tesla's sales in China, which include domestic sales and exports to Europe and other countries, fell by 17% in the second quarter compared to the previous year. The company did not provide a detailed breakdown of its China sales.

One of the highlights of Tesla’s Q2 update was Tesla Energy deploying 9.4 GWh of energy storage products, marking the highest quarterly deployment in the company's history.

Analysts comment on Tesla stock after positive deliveries report

Morgan Stanley: “While this is one of the first and only positive auto surprises of the year for Tesla, we still believe matching last year’s delivery number would be difficult to achieve. Tesla would have to grow 2H deliveries by around 6% YoY to hold volume flat.”

“A ‘show stealer’ from today’s update is the all-time record high stationary storage number for 2Q which is nearly 2x our forecast. As Gen AI acceleration spurs a multigenerational increase in energy demand, electricity generation, and data center investment, we believe investors will begin to pay more attention to Tesla Energy which we value at $36 per Tesla share ($130bn) as the business uniquely positioned to benefit from investment in the US electric grid accelerated by the AI boom.”

Canaccord Genuity: “While 1Q24 deliveries were likely impacted by supply issues, 2Q24 deliveries were likely bolstered by 1Q24 buyers waiting for delivery into 2Q24. As we stated last quarter when the market was overly concerned about demand, the truth about 2Q24 likely lies in the middle. The q/q decline in production indicates, at least to us, that global demand for Tesla remains subdued.”

“With new vehicle models beginning in 2025, and margins stabilization — we should be past the worst quarterly trends for Tesla — at least for a while. Based on our model, revenue and non-GAAP EPS growth both bottomed in 1Q24 — as shown in the chart below — and stocks tend to follow revenue and earnings growth.”

Bernstein: “Unit growth in FY Q2 declined YoY (-5%) for the second straight quarter, and we do not believe that Tesla will achieve its goal of growing unit deliveries this year unless it materially cuts price/provides very favorable financing, pressuring margins and free cash flow.”

“We do not see a lower-cost Model 2 arriving in volume before 2026, and anticipate that “new lower cost” models in 2025 will be relatively modest tweaks, akin to the Model 3 Highland, which are unlikely to meaningfully stimulate demand. Accordingly, we expect Tesla to face many of the same challenges next year, with even more intense competition.”

JPMorgan: “Helping drive the positive reaction in Tesla shares Tuesday we think were three primary factors: (1) that Tesla sales did not fall by even more; (2) that the company finally reversed the trend of producing materially more vehicles than consumers wanted, which should help stabilize the earlier worrying trend in working capital and free cash flow; and (3) Tesla appeared to gain material traction in its energy storage segment, providing a much-needed counterbalance to its shrinking automotive business.”

RBC: “While there was a 33K production shortfall versus deliveries in Q2 (, Q1/24 saw the reverse. Moreover, over a 12-month period, there has been a relatively minor 19K delivery shortfall vs production, or just around 1% of deliveries. As such, we attribute the Q2/24 dynamic to a simple catch-up. Supply constraints should largely be in the rearview mirror at this point.”

5 analysts discuss Tesla stock after Q2 deliveries beat By Investing.com (2024)


5 analysts discuss Tesla stock after Q2 deliveries beat By Investing.com? ›

Tesla (NASDAQ:TSLA) on Tuesday reported its vehicle deliveries for the second quarter, showing a smaller-than-expected decline as aggressive price cuts and incentives helped boost sluggish demand.

What is the analyst outlook for Tesla stock? ›

Tesla Stock Forecast

The 32 analysts with 12-month price forecasts for Tesla stock have an average target of 184.15, with a low estimate of 22.86 and a high estimate of 310. The average target predicts a decrease of -12.25% from the current stock price of 209.86.

How much will Tesla stock be worth in 2025? ›

Analyst Dan Ives raises Tesla price target to $300, sees $400 possible in 2025.

What is the 12 month forecast for Tesla stock? ›

Based on analyst ratings, Tesla's 12-month average price target is $182.10. Currently there's no upside potential for TSLA, based on the analysts' average price target. Tesla has a consensus rating of Hold which is based on 12 buy ratings, 14 hold ratings and 8 sell ratings.

What is the prognosis for Tesla? ›

Based on 34 Wall Street analysts offering 12 month price targets for Tesla in the last 3 months. The average price target is $180.92 with a high forecast of $310.00 and a low forecast of $2.00. The average price target represents a -20.68% change from the last price of $228.10.

Is Tesla a buy sell or hold? ›

Is Tesla stock a Buy, Sell or Hold? Tesla stock has received a consensus rating of buy. The average rating score is and is based on 51 buy ratings, 26 hold ratings, and 16 sell ratings.

What is the price target for Tesla in 5 years? ›

Cathie Wood and her Ark Invest firm updated its Tesla (TSLA) stock price target to 2,600 by 2029 on Wednesday, the day before the EV company holds its annual shareholder meeting with a key vote on Chief Executive Elon Musk's $56 billion 2018 compensation package. TSLA shares advanced Wednesday.

What is the Tesla stock prediction for 2024? ›

Tesla Stock Declines In 2024

That signals another year of earnings declines for this growth stock. Analysts currently expect Tesla earnings per share of just $2.41 in 2024, according to FactSet. That would be a 23% decline vs. $3.12 in 2023.

Is Tesla undervalued? ›

"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.

What is the target price for Tesla in 2027? ›

ARK's 2023 target price was $2,000 a share by 2027. That was up from $1,533 in 2022 and $1,000 in 2021. (The older targets are adjusted for Tesla stock splits.) The $2,000 target was 2026.

What is a fair price for Tesla stock? ›

As of 2024-07-04, the Fair Value of Tesla Inc (TSLA) is 107.02 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 246.39 USD, the upside of Tesla Inc is -56.6%.

Who are the biggest shareholders of Tesla? ›

Elon Musk 12.89 %411,062,07612.89 %
Vanguard Fiduciary Trust Co. 7.325 %233,602,1207.325 %
BlackRock Advisors LLC 4.517 %144,047,8614.517 %
STATE STREET CORPORATION 3.506 %111,828,3703.506 %
6 more rows

Is amzn a buy right now? ›

Amazon has a consensus rating of Strong Buy which is based on 42 buy ratings, 0 hold ratings and 0 sell ratings. What is Amazon's price target? The average price target for Amazon is $221.70.

What is the largest risk for Tesla? ›

  • Tesla Cars Are Too Expensive.
  • Tesla Could Run Out of Batteries.
  • Low Gas Prices.
  • Electric Vehicle Competition.
  • Unability to Recoup Expenditures.
  • A Controversial, Part-Time CEO.

Will Tesla last long term? ›

The life expectancy of a Tesla car can vary, but many Tesla owners report their vehicles lasting well over a decade with proper maintenance. Tesla's battery and drive unit warranty usually spans 8 years or a specified mileage limit, which can offer a useful guideline.

How much is a Tesla battery replacement? ›

However, if you do need to replace the battery and are outside of Tesla's warranty period, here are a few price examples, including labor: Anywhere around $13,000-$20,000 for Models S.

Will Tesla beat earnings in 2024? ›

Tesla Stock Valuation

But Wall Street has kept cutting its earnings estimates. Analysts now see 2024 earnings per share targets at $2.41 a share, according to FactSet, down from $3.79 at the end of 2023, $5.62 a share at the end of March 2023 and a whopping $7.07 at the end of 2022.

What is the target price for SMCI? ›

Stock Price Target SMCI
Current Price$847.00

What is the financial trend of Tesla? ›

Tesla Financial Overview

Tesla's market cap is currently ―. The company's EPS TTM is $3.913; its P/E ratio is 50.57; Tesla is scheduled to report earnings on July 16, 2024, and the estimated EPS forecast is $0.59.

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