Yahoo Finance Wedbush: Tesla recovery story has begun; 2Q deliveries on deck
Tesla (NASDAQ:TSLA) is expected to announce its Q2 deliveries this week, bringing a turbulent first half for the electric vehicle (EV) maker to an end due to weaker demand in the broader market.
However, Wedbush analysts believe that Tesla’s growth in China appears to be gradually improving, with a "mini rebound" in Q2 that could help the company reach Wall Street’s estimate of 435,000 units.
Analysts noted that whisper numbers are lower, ranging from 415,000 to 420,000 units as Wall Street’s key focus going forward is a second-half recovery in unit sales, price stabilization, continued growth in China, and the highly anticipated Robotaxi Day on August 8th hosted by Musk.
“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,” Wedbush analysts said in a note.
“Demand in the key China region is finally showing some signs of heating up in the months of May and June as consumers in this region recognize that no more major price cuts are coming,” they added.
The upcoming robotaxi day is seen as a key moment and a potential near-term catalyst for TSLA, Wedbush highlighted.
The investment firm reiterated an Outperform rating and the price target of $275 on the stock.
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