The electric vehicle (EV) sector appears to be hitting its stride just in time for the summer, traditionally the peak season for EV purchases, and Tesla (NASDAQ: TSLA) shares are poised to benefit from this upswing.
In spite of a challenging 2024 for TSLA stock, recent developments have seen the company’s shares, now situated in Texas, rise 6% in the past month.
The green light for Elon Musk’s compensation package has ignited a surge of optimism from investors who regard Musk’s commitment to the company as unwavering, with expectations that he will fulfill his pledges.
Optimistic sentiment is gradually permeating Wall Street too, as financial analysts raise the valuations and predictions for TSLA stock.
Stifel is Highly Optimistic on TSLA, Predicting a 45% Rise
Stifel has commenced coverage on Tesla shares with a “buy” status and a $265 target price, suggesting a 45% increase. They spotlight Tesla’s escalating expansion opportunities from 2025 to 2027 with the upgraded Model 3, imminent Model Y upgrade, and the widely anticipated Model 2.
The firm also notes the potential for Tesla’s AI-driven Full Self-Driving (FDS) project via sales, licenses, and ‘Cybercab’ ventures.
Tesla’s global market dominance in the EV space, sophisticated technological suite, worldwide production capabilities, and financial performance are solid factors for analyst Stephen Gengaro’s positive stance. The company’s broad supply chain, in-house production operations, and their Supercharger grid contribute to cost effectiveness, brand allegiance, and enhanced sales.
Gengaro acknowledges short-term concerns such as subdued first-quarter results in 2024 and question marks around EV market growth and political events in the U.S., yet he maintains that the most recent lowering in Tesla’s share projections likely marks an end, which could prove advantageous for the automaker.
Shared Optimism for Tesla Among Other Wall Street Analysts
Stifel’s analysts aren’t the sole voices expressing confidence in Tesla, as recent circumstances involving Elon Musk and the company have led a number of financial bodies to revise their estimations upwards.
On June 24, Cantor Fitzgerald’s Andres Sheppard reinstated his “buy” view for Tesla shares, sticking to a $230 target. This estimate was first made in early May and has been upheld three times since.
RBC Capital has preserved its “outperform” classification on Tesla, with the asset price aim remaining at $227, based on RBC’s projected delivery numbers for Tesla in Q2 2024.
New Street Research revalidated its “buy” stance on Tesla shares on June 25. The agency has a $235 target for the stock.
Other fresh analyses have likewise been affirmative. Wedbush and Morgan Stanley reiterated their “buy” positions for Tesla shares. Wedbush appointed a $275 price point, Morgan Stanley at $310.
Not All are Confident in the Future of Tesla Stock
Despite the prevalent enthusiastic mood, some financial entities maintain a conservative perspective, preferring to proceed cautiously.
Guggenheim has reaffirmed their wary stance on Tesla, upholding a “sell” view and a price threshold of $126. They mention concerns regarding stock valuation excesses and the broader market perils.
Moreover, Colin Langan from Wells Fargo has repeated a “sell” perspective on Tesla shares, with a goal of $120, which would represent a 36% cutback from present prices.
With the arrival of Tesla’s Q2 financial disclosures around the corner, stakeholders and experts alike are eager to discover the company’s performance for this portion of the year.
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