Tesla stock surged as much as 9% on Monday after the company delivered 466,000 vehicles last quarter.The strong beat will “put the bears back into hibernation mode in what could be a short covering for the ages.”Here’s how Wall Street is reacting to Tesla’s better-than-expected second-quarter vehicle deliveries. Loading Something is loading.
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Tesla stock surged as much as 9% on Monday after the company reported better-than-expected second-quarter vehicle deliveries.
The electric vehicle maker said it delivered 466,140 vehicles last quarter, well ahead of consensus estimates for about 450,000 deliveries. Meanwhile, the company said it produced about 480,000 vehicles.
Tesla’s Model 3 and Model Y made up the bulk of the deliveries, with the two models accounting for a combined 447,000. Model Y deliveries were up an astounding 87% year over year. The strong delivery beat came after the company reduced its prices earlier this year.
Here’s how Wall Street is reacting to Tesla’s strong second-quarter delivery figures.
Wedbush: ‘Will send bears into hibernation mode'”We believe [Tesla’s 2Q deliveries] is proof to combat the narrative of a murky backdrop and put the bears back into hibernation mode in what could be a short covering for the ages… Price cuts implemented early in 2023 have paid major dividends for Musk as demand appears to remain very strong and production efficiencies have allowed for the massive deliveries beat this quarter. Overall, we believe Tesla is still on track to hit its 1.8 million-unit delivery bogey for the year,” Wedbush analyst Dan Ives said.
Ives maintained his “Outperform” rating and $300 price target.
Goldman Sachs: ‘A strong report'”We consider this to be a strong report as volumes came in well ahead of consensus and GS estimates. We had expected less of an increase in June vehicle deliveries compared to past quarters because Tesla has been in the process of transitioning to a more even delivery schedule throughout the quarter in order to ease logistics and operational constraints, but the report suggests that Tesla was able to close the quarter more strongly than we and consensus had expected. We expect investor focus heading into the 2Q23 EPS call to be on automotive non-GAAP gross margins, and if Tesla will need to make additional price reductions to grow volumes (and if so the margin implication),” Goldman Sachs analyst Mark Delaney said.
Delaney reiterated his “Neutral” rating and increased his price target to $275 from $248.
JPMorgan: ‘Suggest caution after shares +113% year-to-date'”The better than expected 2Q deliveries, in combination with global pricing trends which appear to have roughly stabilized since declining sharply into 1Q earnings, paint a bit better picture of demand for Tesla vehicles than was the case at the time of 1Q earnings in April… Tesla has delivered upon its unit volume expectations when the shares were last trading at this level, but at the sacrifice of substantial revenue and margin, which investors, at the moment, appear to be largely looking through despite the clear implications, in our view, to the long-term earnings power of the company and hence present value of the stock,” JPMorgan analyst Ryan Brinkman said.
Brinkman reiterated his “Underweight” rating and increased his price target to $120 from $115.