Tesla (NASDAQ:TSLA) is on an upswing after the electric vehicle (EV) major reported better-than-expected Q2 deliveries. This has led Wedbush analyst Daniel Ives to boost the price target for the stock. The company’s Q2 vehicle deliveries totaled 443,956, a decline of 4.8% year-over-year but above consensus estimates of 436,000 vehicles. The stronger-than-expected Q2 deliveries have driven TSLA’s stock price up. Over the past five trading sessions alone, TSLA has increased by 20%.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Wedbush Analyst Ives on TSLA
Four-star-rated Wedbush analyst Daniel Ives, a long-time bull on Tesla, raised his price target to $300 from $275 while maintaining a Buy rating on the stock following the company’s Q2 deliveries. The analyst’s price target suggests an upside potential of 21.76% from current levels.
Ives believes that EV demand has stabilized globally, especially in China, and expects Tesla to reach 2 million annual units soon. Furthermore, he has a bull case price target of $400 for TSLA. His bullish thesis hinges on Tesla being the most undervalued AI stock, with the company’s full self-driving segment estimated to be potentially worth $1 trillion.
Tesla Could Attract Lower Tariffs in the EU
Meanwhile, Tesla could potentially attract lower tariffs in the EU. According to a Politico report, EU inspectors visited the company’s Shanghai factory last week to check whether the cars manufactured at the facility were receiving unfair Chinese government subsidies.
Fortunately for Tesla, one of the largest exporters of EVs from China to Europe, the EU reversed an earlier decision to exclude Tesla from inspections, which could have led to higher tariffs. Tesla’s lawyers had argued that exclusion could have resulted in a weighted average tariff of 21% on its Chinese-manufactured cars imported into Europe.
This news comes even as countries in the EU are divided about imposing additional tariffs on EVs manufactured in China. The EU’s decision to impose additional tariffs on the import of Chinese-manufactured EVs followed an investigation last year to determine whether Chinese EV manufacturers benefited from import subsidies in the European Union.
Is Tesla a Buy or Sell?
Analysts remain sidelined about TSLA stock, with a Hold consensus rating based on 12 Buys, 14 Holds, and eight Sells. Over the past year, TSLA has declined by more than 10%, and the average TSLA price target of $180.92 implies a downside potential of 26.6% from current levels.
