It looks like the EV industry is finally revamping ahead of the summer period, which is usually the strongest part of the year for electric vehicle sales, and who better than Tesla (NASDAQ: TSLA) stock to capitalize on this trend.
Despite the rough 2024 TSLA stock has been having, the recent period has brought gains of 6% in the previous month to the newly Texas-based EV maker.
Elon Musk’s remuneration package approval sparked a wave of renewed optimism among investors, who see Musk as fully committed to the company and ready to deliver on his promises.
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Bullishness is slowly starting to grip Wall Street as well, as analysts are upgrading TSLA stock rankings and setting a higher price bar.
Stifel seems most bullish on TSLA stock, with a 45% upside potential
Stifel has initiated coverage of Tesla stock with a “buy” rating and a $265 price target, indicating a potential 45% upside. Stifel highlights Tesla’s strong growth prospects from 2025 to 2027, boosted by the revamped Model 3, the upcoming Model Y refresh, and the anticipated high-demand Model 2.
The American multinational independent investment bank and financial services company also emphasize the significant value potential of Tesla’s AI-based Full Self-Driving (FSD) initiative through sales, licensing, and RoboTaxi also known as ‘Cybercab’ projects.
Tesla’s global EV market leadership, advanced technology portfolio, global manufacturing, and profitability are key factors behind analyst Stephen Gengaro’s confidence. Tesla’s extensive supply chain, internal manufacturing, and Supercharger network drive cost advantages, brand loyalty, and sales.
Despite acknowledging near-term risks, including lackluster first-quarter results in 2024 and uncertainties around EV adoption and the U.S. election, Gengaro believes recent downward revisions in Tesla’s stock estimates are likely over, potentially benefiting the EV maker’s shares.
Other analysts on Wall Street share the bullish sentiment
Stifel analysts are not alone in their bullish thesis on the famous EV maker, as the recent developments surrounding Elon Musk and Tesla as a company have prompted many financial institutions to revise price targets upwards.
On June 24, Cantor Fitzgerald’s Andres Sheppard reiterated his “buy” recommendation for Tesla stock, maintaining a price target of $230. This forecast was initially issued in early May and has been repeated three times since then.
RBC Capital has maintained its “outperform” rating on Tesla, keeping the stock price target at $227. This assessment is based on RBC’s estimated delivery figures for Tesla in the second quarter of 2024.
New Street Research reaffirmed its “buy” rating on Tesla shares in a research note published on June 25. The firm currently has a price target of $235 for the stock.
Other recent evaluations have also been highly positive. Wedbush and Morgan Stanley reaffirmed their “buy” ratings for Tesla shares. Wedbush set a price target of $275, while Morgan Stanley set theirs at $310.
Not everyone is bullish on Tesla stock
However, the current bullish sentiment isn’t completely overwhelming, as some financial institutions keep a reserved stance and prefer to take it one step at a time.
Guggenheim has reiterated its cautious outlook on Tesla, maintaining a “sell” rating and setting a target price of $126. The firm cites concerns about the stock’s overvaluation and potential market risks.
Elsewhere, Colin Langan of Wells Fargo has maintained a “sell” rating on Tesla stock, with a price target of $120, implying a 36% decrease from the current price levels.
With the Q2 earnings report less than a month away, investors and analysts are keen to find out how Musk’s company will fare in the second quarter of this year.
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