Tesla Recovery Story: Analyst Says 'Fun Starts' Soon After Q2 Deliveries

Electric vehicle company Tesla recently cleared a major hurdle by approving CEO Elon Musk‘s pay package, which some analysts considered an overhang.

Looking ahead, several catalysts for the company are coming soon, an analyst writes.

The Tesla Analyst: Wedbush analyst Dan Ives has an Outperform rating on Tesla and $275 price target. Ives' bull case for Tesla is $350 per share in 2025.

Related Link: Tesla Analysts See Robotaxi Day Igniting Interest In Other Autonomous Vehicle Players, Service Providers

The Analyst Takeaways: According to Ives, second-quarter deliveries are the next catalyst for Tesla.

The analyst expects the company to report second quarter deliveries on Tuesday morning.

"Tesla will be announcing its 2Q deliveries to finish a very bumpy 1H for Musk & Co. as softer EV demand has been front and center for Tesla and other EV players," Ives said.

Ives said Tesla could show a "mini rebound" in its second quarter deliveries, with China growing.

Street estimates for deliveries are 435,000 according to Ives with some estimates closer to the 415,000 to 420,000 range.

"Looking at the June quarter, we have seen some signs of stabilization in pricing for Tesla over the past few months as it appears the lion's share of the price cuts are now in the rear-view mirror."

Ives is looking ahead to Tesla's Aug. 8 robotaxi day as the next catalyst after second-quarter deliveries and one of the most anticipated for Tesla in some time.

"We believe the August 8^th robotaxi day will be a key historical moment for the Tesla story that we see as a near-term catalyst."

The analyst said the robotaxi day could be key to getting Tesla to a $1 trillion valuation once again, with the autonomous and FSD visions "taking hold for Tesla."

"It is now official that robotaxi will become a part of the Tesla portfolio as Musk and Tesla get ready for the first Tesla robotaxi to be unveiled on August 8^th."

Ives said Tesla is more a play on artificial intelligence and robotics than being a traditional car company.

"While delivery numbers next week are very important the Street is starting to focus on the next growth driver at Tesla now forming with the worst of the demand doldrums in the rear-view mirror heading into 2H."

Ives said the Tesla turnaround story is now in motion.

TSLA Price Action: Tesla shares trade at $197.88 versus a 52-week trading range of $138.80 to $299.29.

Tesla stock is down 21% year-to-date in 2024.

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Tesla shares were up 5% on the last trading week.

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