In advance of the automaker’s quarterly production and delivery announcement on Tuesday, a major Wall Street brokerage placed Tesla (NASDAQ: TSLA) on its watch list, causing the stock to rise by almost 6% on Monday.
If the price stays at $209.38, Tesla’s market worth may increase by $36.68 billion, marking the fifth straight session of increases for the company’s shares.
Due to a decline in the market for electric cars and competition from Chinese manufacturers like BYD (SZ:002594), Tesla has been forced to lower the pricing of some of its models and place a greater emphasis on robotaxis and autonomous driving technology.
Wells Fargo maintained an “underweight” rating on Tesla but added it to its “Tactical Ideas” list on Monday. The “Tactical Ideas” list is a quarterly compilation of equities the bank believes may have significant near-term upside.
Lead analyst Colin M. Langan stated that there are “few levers remaining to increase volumes outside of pricing & model refreshes” and that the prior price reductions and promotions appeared to have had a “diminished” impact on sales.
According to LSEG analyst projections, Tesla is anticipated to post 6% fewer vehicle deliveries in the April to June period as compared to the same quarter last year.
The company stated in January that it anticipates “notably lower” growth in deliveries this year and abandoned its aim of delivering 20 million vehicles annually by 2030 in its most recent annual impact report, which was released in May.
In the first half of the year, Tesla’s stock sank by 20.4% while the benchmark S&P 500 index increased by 14.5%.
With a median target price of $180, over two-fifths of analysts have a “buy” or higher rating for Tesla, while the remaining two-fifths have a “hold” rating.
