Tesla (TSLAThe stock received another increase in its price target on Monday, following a series of similar actions by companies last week after the EV giant reported record global deliveries.
Jefferies analyst Philip Hoshua raised the company’s TSLA price to 265, up from 185, on Monday. That’s nearly 3% less than Tesla’s closing stock price on Friday of 274.43.
Last week, several companies, including Goldman Sachs and JPMorgan, increased their price targets after Tesla deliveries jumped to 466,140 in the second quarter, beating the first-quarter record of 422,875 and the fourth-quarter 405,278. That easily beats estimates of about 445,000, according to FactSet.
Jefferies has also maintained a suspension rating on TSLA. Houchois said Jefferies was joining the “consensus view” that Tesla’s second quarter would be the lowest in auto gross margins. The analyst added that recent developments also point to a shift in valuation engines with Tesla’s early focus on AI-based autonomy.
Tesla stock fell about 1% to 271.59 in Monday’s market trading.
On Friday, Morgan Stanley analyst Adam Jonas told investors to be careful when looking at the electric vehicle space.
“EV names rose sharply in the second quarter of the year due to risk reversal, positive broadband delivery and other factors including financing milestones,” Jonas wrote.
“We caution investors that the fundamentals of the electric vehicle market (supply/demand) may look like those of the solar industry which point to high growth and disappointing returns,” he said.
Leave the Tesla battery workers out
While Tesla topped analysts’ opinions on second-quarter deliveries last week, Bloomberg reported on Friday that the company may lay off some battery production workers at its Shanghai factory. According to Bloomberg, it’s unclear how many workers may be let go, or the specific reasons behind the layoffs.
Meanwhile, officials in Mexico said that all permits for Tesla’s new factory in the country are in full swing, according to local reports. Officials told the press there was no set date for when construction would begin, but groundbreaking could begin “at any moment.”
Tesla executives confirmed their plans to build a factory in Mexico in March. The company’s long-awaited next-generation car will be built in Giga Mexico, according to Tesla.
The Nasdaq 100 index will reduce the dominance of the “Magnificent Seven”
TSLA shares are up 122% in 2023 and 169% year-to-date on Jan. 3. 6 low. However, Tesla stock is still far from its all-time high of 414.50, which it hit in November 2021.
On June 2, Tesla cleared 207.79 points of purchase from any double-bottom cup or base. It was part of a record 13-session winning streak for Tesla, with the last 12 sessions coming with above-average trading volumes. Stocks paused in late June amid the broader market decline, but bounced back near the 21-day lines.
The TSLA Index jumped 6.9% to 279.82 on July 3 after its strong delivery numbers for the second quarter, stalling it to a nine-month high.
Tesla announces its second quarter financial statements on July 19th.
Please follow Kit Norton on Twitter @employee for more coverage.
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