Tesla Shares Rebound as Analysts See Path to Record Highs

Tesla Shares Rebound as Analysts See Path to Record Highs

Tesla (TSLA) has been on a notable upward trajectory recently, with a strong performance that has erased the stock’s losses for the year in just a few weeks. Despite this rally, the stock remains distant from its all-time peak. However, some analysts are optimistic about its potential to climb back to those lofty levels.

In Wednesday’s shortened trading session, Tesla shares surged by 6.5%, closing at $246.39. This price not only reflects a significant jump but also pushes the stock above its 2023 year-end level. Additionally, it achieved this during after-hours trading. This resurgence, however, is still far from its record high of $409, achieved back in November 2021.

Tracking the Electric Vehicle Sector’s Fluctuations

The ups and downs of Tesla’s stock have closely followed the broader fortunes of the electric vehicle (EV) industry. The sector saw a peak about three years ago, but the bubble burst as demand started to wane and competition intensified. The emergence of Chinese EV manufacturers has particularly heated up the market, leading to aggressive price wars that have pressured even the strongest players.

Tesla Gains Ground in China

Amidst these challenges, Tesla has received a boost from positive developments in China. For the first time, Tesla has been included on a government procurement list in Jiangsu province. This inclusion means Tesla’s electric vehicles can now be used as service cars by public organizations within the province. This milestone marks a significant opportunity for Tesla to expand its footprint in one of the world’s largest EV markets.

Tesla Investors Await Delivery Results Amid Market Fluctuations

Tesla Investors Anticipate Quarterly Delivery Results Amidst Market Fluctuations

As Tesla gears up to unveil its second-quarter delivery figures, investors are navigating a landscape shaped by fluctuating market conditions.

Struggles in the Broader EV Market

While Tesla navigates these market dynamics, the broader EV sector continues to face significant hurdles. Once-promising startups like Fisker (FSRNQ) have collapsed, and Rivian (RIVN) is seeking substantial financial support from Volkswagen (VOW3) to stay afloat. These struggles highlight the ongoing volatility and competitive pressures within the industry.

Looking Beyond EVs: Tesla AI Ambitions

Looking to the future, some analysts believe Tesla’s success will depend on its ability to transcend its identity as merely an EV manufacturer. According to Wedbush analysts led by Dan Ives’. Tesla’s CEO Elon Musk could drive the stock higher by showcasing breakthroughs in artificial intelligence (AI). Musk, who recently reclaimed his position as the world’s richest person. Is set to unveil progress in AI at the upcoming Robotaxi day next month.

“The critical factor for Tesla’s stock is the market’s recognition of Tesla as the most undervalued AI opportunity,” said Ives and his team. “Tesla is evolving more into an AI and robotics company rather than just a traditional car manufacturer. The market is closely watching Aug. 8 as a pivotal day.”

Analysts Raise Price Targets Amid Optimism

On July 2, Wedbush raised its price target for Tesla stock to $300 from $275, maintaining an Outperform rating. In their most bullish scenario, they foresee shares potentially climbing to $400. Furthermore, they speculate that Tesla’s full self-driving unit alone could be worth $1 trillion.

Known for its bullish outlook, Wedbush remains optimistic about Tesla’s future. If their predictions hold true. Investors might have much to celebrate in the coming months if Tesla’s challenging days are indeed behind it.

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