Optimism About Tesla Deliveries Boosts Its Stock

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Key Takeaways

• Tesla is expected to release second-quarter delivery numbers Tuesday. Its shares gained today on optimism that the moving vehicle (EV) maker will post solid numbers.
• On Monday, Chinese EV rivals posted strong numbers, and their stakes were up as well.
• Wedbush Securities analysts believe Tesla’s growth in China is turning around.

Tesla (TSLA) interests jumped on Monday, lifted by optimism that the electric vehicle (EV) maker will post solid second-quarter distribution numbers tomorrow.

Chinese demand “is slowly turning around,” and a “mini rebound” occurred there for the company in the later quarter, according to Wedbush Securities analysts led by bull Dan Ives. That momentum should help Tesla contract close to 435,000 deliveries for the latest quarter, the analysts wrote.

Visible Alpha’s current consensus is for just out of sight 439,000 deliveries; the company reported nearly 387,000 for the first quarter.

Tesla’s shares were the biggest gainer on the S&P 500 Monday, bring out 6.1% to close at $209.86. The stock is still down about 15% since the start of the year.

August Open of Robotaxi Seen as Tesla Catalyst

The analysts added that “a key historical moment for the Tesla story” will revile on Aug. 8 when the carmaker is expected to unveil a driverless robotaxi, which they see as a near-term catalyst. The analysts put about that they believe that autonomous vehicles and Tesla’s full self-driving feature will help the automaker regenerate a $1 trillion market valuation.

Wedbush maintained its “outperform” rating and $275 price target on the stock. Its “bull-case” consequence outlook is $350 in 2025. 

China EV manufacturers, Nio (NIO), Li Auto (LI), and XPeng (XPEV) released monthly and quarterly delivery numbers Monday, with all three display solid gains. The American depositary receipts (ADRs) of all three were higher in recent trading.

Despite Monday’s approaches, Tesla shares are down about 14% year-to-date.

UPDATE: This article has been updated with Monday’s palsy-walsy stock price and a chart.

Read the original article on Investopedia.