Tesla stock received several price target increases Tuesday and Wednesday following second-quarter global vehicle deliveries coming in above analyst expectations even as the total number declined compared to a year ago.
Following Tesla's deliveries release Tuesday, TSLA closed up 10.2% at 231.26. That added to a 6% jump on Monday and reclaimed the stock's 200-day moving average for the first time since January.
As TSLA surged, Guggenheim raised its price target on Tesla stock to 134, up from 126, and kept a sell rating. This is 72% below where TSLA traded on Tuesday. Bank of America increased its price target on Tesla to 260 up from 220.
Guggenheim analysts wrote that while the delivery total was a "materially positive surprise," they felt that Tesla's stock rally owed to the EV giant's "robust" energy storage deployments.
Wedbush Securities analyst Dan Ives, a longtime Tesla bull, on Tuesday raised his price target to 300, up from 275. Ives also has a new bull case for 400 by 2025 as he is focused on Tesla's "robotaxi" reveal next month.
"The worst is in the rearview mirror for Tesla as we believe the EV demand story is starting to return to the disruptive tech stalwart ahead of a historical robotaxi day on Aug. 8," Ives said.
Meanwhile, Morgan Stanley analyst Adam Jonas kept his price target of 310 unchanged.
"While this is one of the first and only positive auto surprises of the year for Tesla, we still believe matching last year's delivery number would be difficult to achieve," Jonas wrote.
The analyst added that Tesla's energy storage deployments were a "show stealer" as AI "acceleration spurs a multigenerational increase in energy demand."
Tesla Stock Performance
On Wednesday, Tesla stock gained 6.6% to 246.52 in market action. The stock market closed early, at 1 p.m. ET, on Wednesday.
TSLA shares' advance this week adds to a 8.1% jump last week. Tesla stock has now broken out from a 191.08 handle buy point, according to MarketSurge chart analysis. That buy range extended to 200.63.
In June, shares gained more than 11%. Tesla shareholders recently voted in favor of giving Musk his 2018 $56 billion pay package and reincorporating the EV giant in Texas, moving it from Delaware.
With the company's annual meeting wrapped up, analysts are looking to Tesla's second-quarter earnings on July 23. The company will also unveil its robotaxi on Aug. 8.
Tesla stock ranks third in the 35-member IBD Auto Manufacturers industry group. The stock has a 78 Composite Rating out of a best-possible 99. Shares have a 72 Relative Strength Rating and a 62 EPS Rating.
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