Jefferies Raises Tesla Price Target to $400 After Strong Q2 Delivery Beat
Analysts maintained Hold rating while citing 480,000 deliveries that beat Wall Street consensus by over 15 percent.
Jefferies upgraded Tesla's price target to $400 from $375 following the company's strong second-quarter delivery performance, while maintaining its Hold rating on shares.
What Happened
Tesla reported 480,000 deliveries for Q2, significantly exceeding Wall Street expectations of between 395,000 and 405,000 units—an over 15 percent beat. The company sold more vehicles than it produced during the quarter. Jefferies raised its price target while maintaining a Hold rating on shares.
Why It Matters
The delivery performance demonstrates sustained demand strength despite last year's loss of the $7,500 EV tax credit. However, investors should note that long-term initiatives like Optimus and Robotaxi expansion may initially carry losses before reaching meaningful scale. Jefferies also warned that growing merger speculation between Tesla and SpaceX could cause Tesla stock to trade more like a SpaceX proxy, potentially disconnecting it from underlying automotive fundamentals.
The Bottom Line
Tesla's Q2 deliveries beat Wall Street expectations by over 15 percent, prompting Jefferies to raise its price target to $400 while keeping a Hold rating. While the core auto business remains strong, investors should be aware that newer ventures will take time to become profitable.
