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Time to be Bullish?
Tesla (TSLA) shares have been on a remarkable upward trajectory, closing higher for six consecutive days, and a seventh day of gains appears imminent as today's market session comes to an end. This recent rally has propelled the electric vehicle (EV) leader's stock by nearly 40%+ over the past month.
The latest surge follows TSLA's report of relatively strong vehicle delivery results for the second quarter. This positive performance prompted Dan Ives, a widely followed analyst from Wedbush, to raise his already optimistic price target for the company. Ives increased his target from $275 to $300 per share, which would represent a further 30% gain from yesterday's closing price.
Demand for EVs is showing signs of robustness once again. TSLA delivered nearly 444,000 EVs in the second quarter, marking a 4.8% decline from the same period last year but surpassing many analysts' expectations. Ives believes this is merely the beginning of an acceleration in Tesla's EV sales. In his report, he stated:
"With the majority of price cuts behind us and global demand for EVs stabilizing, especially in China, we believe Tesla is on track to achieve an annual trajectory of 2 million units over the coming quarters."
But like I always have highlighted, the company’s growth prospects extend beyond just EV sales. The company reported record deployments of its energy storage products, with 9.4 GWh (gigawatt hours) deployed in the last quarter, surpassing the previous record by 129%. This expansion in energy storage could significantly enhance TSLA's earnings and sales when it reports its full second-quarter results on July 23. Many seem to be underestimating this reported data point, which serves as another catalyst to the recent surge in the stock price.
Moreover, investors are eagerly anticipating a potential catalyst from the upcoming robotaxi update scheduled for August 8. Speculating here, but this anticipation has driven many to invest in TSLA stock ahead of these updates, reflecting widespread optimism about the company's future performance and innovative advancements.