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Analyst maintains Tesla Buy rating on Q2 delivery figures

EditorNatashya Angelica
Published 07/02/2024, 12:33 PM
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On Tuesday, Stifel, a financial services company, maintained its Buy rating on shares of Tesla (NASDAQ:TSLA) with a steadfast price target of $265.00. The firm's reassurance comes in the wake of Tesla's second-quarter delivery figures, which surpassed both the consensus estimate and Stifel's own predictions.

Tesla reported deliveries of 443,956 vehicles, topping the anticipated consensus of approximately 438,000 and Stifel's forecast of 432,859.

The performance is particularly noteworthy considering the skepticism prior to the delivery report and the significant short interest in the stock. Tesla's achievement in the second quarter is seen as a strong indicator of the company's momentum and is expected to have a favorable impact on its share value.

In addition to Tesla's success, Rivian (NASDAQ:RIVN), another electric vehicle manufacturer, also exceeded delivery and production expectations for the second quarter of 2024. Rivian's performance, coupled with Tesla's robust delivery numbers, is anticipated to be well-received by the market.

Stifel's analysis suggests that the positive delivery results from both Tesla and Rivian are likely to contribute to a positive reaction in their respective stock prices today. This outlook is based on the companies’ ability to outperform expectations and deliver solid production numbers in a competitive and closely watched segment of the automotive industry.

The sustained Buy rating and $265.00 price target for Tesla by Stifel reflect a confidence in the electric vehicle maker's prospects and its capacity to maintain a growth trajectory in the face of market uncertainties and competitive pressures.

In other recent news, Rivian Automotive Inc. exceeded its second-quarter production and delivery targets, manufacturing 9,612 vehicles and delivering 13,790. The company is maintaining its full-year guidance for 57,000 vehicles to be produced in 2024.

In a significant development, Rivian announced a $2 billion deal with Volkswagen (ETR:VOWG_p), which has led to several analyst firms, including RBC Capital, Canaccord Genuity, and Needham, increasing their share targets.

Truist Securities maintained a 'Hold' rating on Rivian, while Piper Sandler maintained its 'Overweight' rating, emphasizing the Volkswagen deal's potential benefits. RBC Capital increased its price target for Rivian from $11.00 to $14.00, while Canaccord Genuity raised its shares target to $30.00, up from $20.00.

These recent developments highlight the positive outlook for Rivian's operational capabilities and strategic partnerships.

InvestingPro Insights

Rivian's recent financial performance and market behavior provide a mixed bag of insights. Despite facing challenges with cash burn and weak gross profit margins, Rivian holds more cash than debt, indicating a solid liquidity position. The company's liquid assets also exceed its short-term obligations, offering some financial stability in the near term.

InvestingPro Data highlights Rivian's significant revenue growth over the last twelve months as of Q1 2024, with an impressive 123.79% increase. Still, this growth comes with the caveat of a negative gross profit margin of -40.63%, reflecting the costs outweighing revenue. The stock price has been volatile, experiencing a strong return over the last week at 16.39%, and over the last month at 27.47%, but it has taken a hit over the last six months with a -34.03% return.

InvestingPro Tips suggest that while analysts do not anticipate Rivian will be profitable this year, the company's recent performance has shown some signs of recovery. For investors looking for a deeper dive into Rivian's financial health and stock potential, there are additional InvestingPro Tips available. Use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, and gain access to a comprehensive list of 12 additional InvestingPro Tips that can further inform investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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