Tesla stock pops 6%, extends rally as ‘Mojo back for Musk’ after latest delivery data

Tesla stock (TSLA) prolonged gains on Wednesday, rising greater than 6% after jumping 10% on Tuesday as Wall Street weighed in on the electrical carmaker’s quarterly vehicle delivery results that topped expectations. Tesla stock has now gained greater than 70% since its most up-to-date low in late April.

Tesla this week announced it produced roughly 411,000 vehicles and delivered nearly 444,000 cars through the second quarter, beating consensus estimates and marking a rise from the primary quarter.

And despite a year-over-year drop in deliveries, analysts were bullish on the report and pointed to signs the EV industry could also be holding up better-than-expected.

“We proceed to see scope for improving sentiment in Tesla shares in addition to broader EV sentiment as compared with the negative sentiment now we have seen over the past ~6 months,” Citi analysts wrote in a note following the outcomes on Tuesday.

Dan Ives at Wedbush Securities said in a note the corporate’s deliveries marked a “major turning point” within the “Tesla bull case story.”

“The important thing for Tesla’s stock is the Street recognizing that Tesla is probably the most undervalued AI play available in the market,” Ives wrote, adding the “Mojo back for Musk” as he raised his price goal on the stock to $300 from $275 with a latest bull case of $400 for 2025.

Ives added the corporate’s Robotaxi event on August 8 “will lay the yellow brick road to [full self-driving] and an autonomous future.”

Morgan Stanley’s Adam Jonas called Tesla’s results the “1st Positive Surprise of the 12 months,” noting the automaker delivered 33,000 units greater than it produced within the second quarter.

The analyst also highlighted a “show stealer” from its release — Tesla’s energy storage business, which posted its highest quarterly deployment yet. The business, which incorporates utility-scale Megapacks, has been growing faster than the EV segment, with a record profit margin.

“Tesla began its Independence Day celebration early with a positive 2Q delivery beat, 33k lower inventory and a big storage beat to remind investors it is not just an auto company,” wrote Jonas.

His team has an Chubby rating on the stock with a $310 price goal.

Tesla has faced stiff competition abroad from its Chinese counterparts and faced some waning demand for EVs within the US. In an effort to scale back costs, the corporate launched into a plan to chop greater than 10% of its global staff earlier this yr in what some analysts saw as a signal of tough times ahead.

During Tesla’s shareholder meeting last month CEO Elon Musk confirmed that near-term demand and sales would still struggle somewhat because the industry goes through a transitionary period.

The corporate also slashed prices last yr to spur sales.

“There remains to be the danger of further price cuts ahead, and there [are] still further questions on fundamentals, we’re still facing somewhat of an EV winter on demand,” Barclays senior equity research analyst Dan Levy told Yahoo Finance on Tuesday. “So, good result. But I believe the elemental macro backdrop remains to be the identical.” Levy has an EqualWeight rating on the stock and a $180 price goal.

Unsold 2023 Model X sports-utility vehicles sit at a Tesla dealership, June 18, 2023, in Littleton, Colo. (AP Photo/David Zalubowski) (ASSOCIATED PRESS)

Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.

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