Tesla Delivery Report Sparks Uptick in Bullish Sentiment from Analysts

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Tesla's (NASDAQ: TSLA) strong delivery results are eliciting a positive response from analysts. Deepwater Asset Management underlined the maker's success; “Our money's on Elon,” said Canaccord Genuity; and Goldman Sachs raised its price target for TSLA from $248 to $275 in line with delivery data.

Yesterday, Tesla reported it had delivered 466,140 vehicles in Q2 2023. The number was about 20,000 units above the Wall Street consensus. It was quite a big gap between the forecasts, so some investment firms reacted today.

“Tesla's price cuts are working in a big way,” said Gene Munster, managing partner at investment firm Deepwater Asset Management, according to Reuters. “The average growth of deliveries over the previous seven quarters was 50 per cent. This (quarter) marks a measurable step up in growth.”

“Our money's on Elon,” said Canaccord Genuity analyst George Gianarikas. He raised the firm's price target on Tesla by $36 to $293.

Analyst Dan Ives of Wedbush Securities was also positive. He said Tesla deliveries in the second quarter will put the bears into hibernation. Ives sees that for the entire year, the company will deliver significantly more vehicles than it planned at the beginning of the year.

Meanwhile, US investment bank Goldman Sachs raised its Tesla price target from $248 to $275 in line with delivery data. Analyst Mark Delaney wrote in a note that deliveries in the second half of the year clearly will exceed expectations. The quarterly report should now focus on profit margins and whether further price cuts are needed to boost sales.

So far, at least eight analysts have raised their share price targets. Several said Tesla's annual target of delivering about 1.8 million vehicles now seems conservative, with the company already having delivered about half of that in the first six months of 2023. 

© 2023, Eva Fox | Tesmanian. All rights reserved.

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