Baird reiterated his positive stance on Tesla (NASDAQ:) stock on Wednesday, maintaining an Outperform rating and a $280.00 price target. The company expects Tesla to release second-quarter delivery data on July 2, predicting that these numbers could be lower than current consensus estimates.
Despite the expectation of a decline in deliveries, discussions with investors and recent news suggest a change in direction towards the long-term outlook, especially with the upcoming Robotaxi event scheduled for August 8th.
The Baird analyst pointed out that while the second quarter delivery data remains significant, the intensity of interest in this near-term data has diminished somewhat compared to the first quarter. The firm recommends buying Tesla stock after its second-quarter deliveries report, underscoring the company’s core investment status.
The announcement of Tesla’s second-quarter deliveries comes at a time when investor attention is reportedly shifting to the company’s future developments. The Robotaxi reveal event, expected to be a milestone, is attracting considerable interest as it could have long-term implications for Tesla’s business model and the auto industry in general.
The focus on the Robotaxi initiative reflects a broader trend in the electric vehicle industry, where companies are not only evaluated on immediate production and delivery metrics, but also on their potential for innovation and solution leadership of future mobility. For this reason, events like the Robotaxi unveiling are closely watched by investors looking to evaluate a company’s trajectory and technological advantage.
Bottom line, Baird’s position on Tesla remains unchanged with a strong Outperform rating, indicating confidence in the company’s long-term value despite potential short-term fluctuations in delivery numbers. Anticipation for Tesla’s future initiatives, particularly the Robotaxi service, appears to be a key factor in maintaining investor interest and the company’s positive view on the stock.
In other recent news, Tesla Inc. is seeking to overturn a ruling related to CEO Elon Musk’s $56 billion pay package, according to a recent shareholder vote. Meanwhile, RBC Capital lowered its price target on Tesla from $293 to $227, maintaining its Outperform rating but reevaluating the company’s potential in the robotaxi market.
On the international front, the Canadian government is considering imposing tariffs on the import of Chinese-made electric vehicles, following similar moves by the United States and the European Commission. The latter is ready to apply provisional duties on Chinese electric vehicles, with rates ranging between 17.4% and 38.1%, starting from July 4th.
Chinese automaker BYD and Vietnam’s VinFast are leading a surge in Southeast Asia’s electric vehicle market, with sales more than doubling in the first quarter of 2024 compared to the same period a year earlier. These developments are part of recent news affecting the global electric vehicle industry.
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