After experiencing fluctuations in Tesla’s stock price and legal controversies surrounding Musk, Wall Street analysts suggest that the electric vehicle company may be poised for a comeback. Investors have been eyeing this potential recovery for over a year, despite a 15% decline in Tesla sales over the past 12 months. While deliveries have decreased for the second consecutive quarter, they exceeded analysts’ expectations, reaching 443,956 units compared to the anticipated 436,000.
These figures indicate a brighter future for Tesla, especially as Musk addresses compensation issues and investors focus on advancements in artificial intelligence. Analysts at Morgan Stanley noted that concerns over Musk’s 2018 compensation package, which could potentially lead to management changes, have now shifted towards positive catalysts for Tesla’s second-quarter results and beyond.
During the second quarter, Tesla also reduced its inventory and achieved record-high results in energy storage. This increase positions Tesla to capitalize on growing energy demand driven by the artificial intelligence boom.
Morgan Stanley reaffirmed its Tesla stock rating with a target price of $310, implying a potential increase of 30%. Gareth Nelson, Senior Stock Strategist at CFRA Research, mentioned that the shares have gained momentum since mid-June. He believes Musk has successfully redirected investor focus towards long-term opportunities in artificial intelligence, robotics, and energy storage.
CFRA maintains its “Buy” rating and raised its target price to $250 per share. Other analysts, like Keith Fitzgerald, forecast that Tesla’s shares could double or triple in the coming years, emphasizing Tesla’s potential as an undervalued company in the artificial intelligence sector.
Dan Ives of Wedbush Securities views the rollout of Robotaxi as a key moment for Tesla, potentially pushing stock prices up to $400 by year-end, implying a 63% increase from current levels.
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