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Tesla share maintains price target ahead of Q2 deliveries

EditorNatashya Angelica
Published 06/26/2024, 12:17 PM
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TSLA
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On Wednesday, Baird affirmed its positive stance on Tesla shares (NASDAQ:TSLA), maintaining an Outperform rating and a price target of $280.00. The firm anticipates Tesla to release its second-quarter delivery figures on July 2, projecting that these numbers might fall short of the current consensus estimates.

Despite the expected lower delivery numbers, investor discussions and recent news suggest a pivot in focus towards long-term prospects, particularly with the upcoming Robotaxi event scheduled for August 8th.

The Baird analyst pointed out that while the Q2 delivery data remains significant, the intensity of interest in these near-term figures has somewhat diminished compared to the first quarter. The firm encourages buying Tesla shares following the Q2 delivery report, emphasizing the company's status as a fundamental investment.

Tesla's anticipated Q2 delivery announcement comes at a time when investor attention is reportedly shifting towards the company's future developments. The Robotaxi unveiling event, which is expected to be a major milestone, is drawing significant interest as it could have long-term implications for Tesla's business model and the broader automotive industry.

The focus on the Robotaxi initiative reflects a broader trend in the electric vehicle sector, where companies are not only evaluated on immediate production and delivery metrics but also on their potential to innovate and lead in future mobility solutions. As such, events like the Robotaxi unveiling are closely watched by investors seeking to gauge a company's trajectory and technological edge.

In conclusion, Baird's stance on Tesla remains unchanged with a strong Outperform rating, signaling confidence in the company's long-term value despite potential short-term fluctuations in delivery numbers. The anticipation surrounding Tesla's future initiatives, particularly the Robotaxi service, appears to be a key factor in maintaining investor interest and the firm's positive outlook on the stock.

In other recent news, Tesla Inc. is seeking to overturn a pay ruling concerning CEO Elon Musk's $56 billion compensation package, hinging on a recent shareholder vote. Meanwhile, RBC Capital has lowered Tesla's price target from $293 to $227, maintaining an Outperform rating but reassessing the company's potential in the robotaxi market.

On the international front, the Canadian government is considering imposing import tariffs on Chinese-made electric vehicles, following similar moves by the U.S. and the European Commission. The latter is set to enforce provisional duties on Chinese EVs, with rates between 17.4% and 38.1%, effective after July 4.

Chinese automaker BYD (SZ:002594) and Vietnam's VinFast (NASDAQ:VFS) are leading a surge in the Southeast Asia EV market, with sales more than doubling in the first quarter of 2024 compared to the same period last year. These developments are part of recent news affecting the global electric vehicle industry.

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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