Tesla (NASDAQ:TSLA) is basking in the glory of an upswing after delivering Q2 results that surpassed expectations. Wedbush analyst Daniel Ives, bullish on the electric vehicle (EV) major for some time, has responded by upping the stock’s price target. Tesla reported Q2 vehicle deliveries totaling 443,956, slightly down from last year but comfortably exceeding estimates. This stellar performance has sent TSLA’s stock soaring, with a 20% rise over the past five trading sessions.
Wedbush Analyst Ives Cautiously Optimistic
Renowned Wedbush analyst Daniel Ives, who holds a four-star rating, has long been a vocal supporter of Tesla. Following the strong Q2 deliveries, he raised the price target to $300 from $275, maintaining a Buy rating. This new target suggests an upside potential of 21.76% from the current levels.
Ives is confident in the stabilization of EV demand globally, particularly in China, and foresees Tesla reaching 2 million annual units shortly. Additionally, he holds a bullish outlook with a $400 price target for the stock. His optimism centers on Tesla being undervalued in the artificial intelligence (AI) space, pinpointing the potential $1 trillion value of its full self-driving segment.
EU Tariff Considerations for Tesla
On another front, Tesla could see reduced tariffs in the EU. Recent reports indicate EU inspectors visited Tesla’s Shanghai factory to ensure compliance with subsidy regulations, potentially leading to lower tariff burdens. This comes in the midst of EU deliberations on imposing tariffs on Chinese-manufactured EVs, stemming from concerns of unfair advantages due to subsidies.
Tesla’s legal team successfully argued against the exclusion of their vehicles from inspections, averting higher tariffs that could have inflated costs significantly. Their victory aligns with the EU’s prior investigations on Chinese EV makers benefiting from subsidies, prompting the initiation of additional tariffs.
Investor Outlook on Tesla
Despite Tesla’s recent surge, analysts maintain a cautious stance, resulting in a Hold consensus rating with 12 Buys, 14 Holds, and eight Sells. Over the past year, TSLA has witnessed a more than 10% decline, amplifying skepticism. Analysts project an average price target of $180.92, indicating a downside potential of 26.6% from the current levels.
