Tesla price target: analyst and firm adjustments ahead of Q2 Earnings Call

Tesla (NASDAQ: TSLA) has gotten several updates to its price target from various analysts and firms as the Q2 Earnings Call next week takes focus.

Tech analysts and firms alike have made various adjustments to their outlook on the EV maker’s stock over the past several weeks.

Despite what has been a lackluster year for Tesla because of its expected and planned leveling in year-over-year sales growth due to the development of the next-gen platform and Robotaxi, price targets have improved because of the delivery beat reported along with robust and relatively unexpected energy deployment numbers.

What caused Tesla price target increases?

Tesla beat analyst expectations in terms of vehicle deliveries for Q2 by about 6,000 cars, which was significant. However, Tesla’s big surprise was a 132 percent increase in energy storage deployments from Q1 to Q2.

Q1 was a company record at the time, but Q2 more than doubled the amount of battery storage capacity.

This caused some analysts to adjust their price target breakdowns of Tesla stock and others to start to factor in the energy division more than previously.

Tesla bears officially have their next big threat: Tesla Energy

Tesla $TSLA Price Target Adjustments

Wedbush, Morgan Stanley, Citi, and several other firms adjusted Tesla price targets after the company reported Q2 figures.

Wedbush

Wedbush raised its price target by $25 to $300 from $275, citing a “major turning point” in the bull case.

Dan Ives of Wedbush said:

“The key for Tesla’s stock is the Street recognizing that Tesla is the most undervalued AI play in the market in our view with a historical Robotaxi Day ahead for Musk and Tesla on August 8th that will lay the yellow brick road to FSD and an autonomous future.”

Morgan Stanley

Morgan Stanley did not increase its price target, but it did adjust the breakdown of how much the energy division factors into its $310 rating.

Previously, energy only made up $36 per share of the $310 price target that Morgan Stanley held. After this quarter, energy accounts for $50 per share.

“It’s no wonder that investors are starting to consider the real possibility that Tesla Energy may be worth more than Tesla Auto,” Adam Jonas of Morgan Stanley said in a note.

Citi

Citi boosted its outlook for Tesla from $182 to $274, stating that AI and subsequent automotive developments will need to justify the uptick.

Citi analysts said the increase in stock price won’t come from “core EV fundamentals” but instead from the execution of its future projects:

“The Q2 delivery beat was also encouraging, which prompts increased estimates and supports Citi’s underlying call for improving EV sentiment this summer. However, the firm believes core EV fundamentals alone are unlikely to support significantly further upside from here in Tesla shares absent new product and AI catalysts.”

Mizuho

Mizuho held its ‘Neutral’ rating but increased its price target on Tesla shares from $180 to $230. It also is not relying on EV fundamentals to see this growth, but instead stating AI, especially Robotaxi and the Optimus humanoid robot, will be the major factors in an increase in valuation.

Analysts at the firm said these catalysts “could be much more difficult” to obtain but could be significant factors for an increase in price.

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