Currently, Wall Street analysts unanimously believe that after a difficult period in Tesla's stock price and many dramatic events sparked by the legal dispute surrounding CEO Musk, the electric vehicle manufacturer may be ready to make a comeback.
For over a year, investors have been paying attention to potential rebound opportunities in Tesla's stock. Tesla's sales have declined by 15% in the past 12 months. Its delivery volume has also declined for the second consecutive quarter, but the data was better than analysts expected, reaching 443956 vehicles, compared to the previous expectation of 436000 vehicles.
On Wednesday Eastern Time, Tesla continued to be boosted by Q2 delivery exceeding expectations, closing up over 6% and rising for seven consecutive trading days, setting a record for the longest consecutive rise since June 2023. According to calculations, the stock has risen nearly 34.95% since its close on June 24th, almost reclaiming all the lost ground of the year.
Energy storage has become a major highlight
Analysts believe that as investors begin to focus on the development of artificial intelligence (AI), these data may herald a good day for this automaker.
"Tesla regained its magic?" Morgan Stanley strategist said in the latest report. "Just two weeks ago, our clients were preparing for shareholders to reject Musk's 2018 compensation plan, which could lead to changes in management and strategy, further amplifying the negative news impact that has been concentrated for months. However, fast forward to today, clients have begun to ask us about positive catalysts for performance in the second quarter and beyond."
In addition, Tesla also reduced inventory in the second quarter and increased sales of its energy storage to a historic high. Strategists at Daimo stated that higher energy storage sales are a "catchy" update, as it indicates that Tesla can benefit from the rising energy demand brought about by the artificial intelligence boom.
They wrote in the report that as the new generation of artificial intelligence accelerates the growth of energy demand, power generation, and data center investment, it is believed that investors will begin to pay more attention to Tesla Energy. Da Mo's valuation of Tesla Energy Company is $36 per share, as the company is in a unique position to benefit from accelerated investments in the US power grid due to the AI boom.
Morgan Stanley has reiterated its "overweight" rating on Tesla stock, with a target price of $310, indicating that the stock still has about 26% room for growth.
Unmanned taxis are worth looking forward to
Garrett Nelson, senior stock strategist at CFRA Research, said, "After the annual meeting in mid June, Tesla's stock continued to maintain a positive momentum. We believe that Musk has successfully shifted investors' attention to long-term opportunities in artificial intelligence, robotics, energy storage, and other business areas, diverting attention from the many recent challenges."
He added that Wall Street is currently focusing on Tesla's autonomous taxi service, and Musk has been discussing this fully autonomous service for several months, stating that it may be a "huge driving force" for future growth.
The CFRA maintains a "buy" rating on the stock and has raised its target price to $250 per share.
After delivering better than expected data, some strategists have a more optimistic view.
"I think Tesla's stock price will double, triple, or even more in the coming years," said Keith Fitz Gerald, head of research at research firm Keith Fitz Gerald. "This is a problem with robotics. I think it may be the most undervalued artificial intelligence target on this planet right now. Whether you love or hate him, Musk knows what he's doing."
Dan Ives, a renowned strategist at the US investment bank Wedbush, previously stated that Tesla's stock price may rise significantly in the second half of this year, as Robotaxi's debut represents a turning point for the company.
Wedbush reiterated Tesla's "stronger than the market" rating and raised its target stock price to $300 per share. Ives stated that in the most optimistic scenario, Tesla's stock price may rebound to $400 by the end of this year, up 63% from its current level.
"For Tesla stocks, Wall Street has recognized that Tesla is the most undervalued artificial intelligence company in the market. In short, Tesla's worst has passed because we believe that before the historic Robot Taxi Day on August 8th, demand for electric cars is beginning to return to the hands of this disruptive technology giant.".