Tesla stock received another price-target increase Monday, following a slew of similar actions by firms last week after the EV giant reported record global deliveries.
Jefferies analyst Philippe Houchois hiked the firm's TSLA price target to 265, up from 185, Monday. That's about 3% below Tesla stock's Friday closing price of 274.43.
Last week, numerous firms, including Goldman Sachs and JPMorgan, increased their price targets after Tesla deliveries jumped to 466,140 in the second quarter, sprinting past Q1's record 422,875 and Q4's 405,278. That easily beat estimates of around 445,000, according to FactSet.
Jefferies also maintained a hold rating on TSLA. Houchois said Jefferies was joining the "consensus view" that Tesla's second quarter will be a trough in auto gross margins. The analyst added that recent developments also suggest a shift in valuation drivers with Tesla's early focus on AI-based autonomy "standing out."
Tesla stock edged down 1.8% to 269.39 Monday during market trade.
On Friday, Morgan Stanley analyst Adam Jonas told investors to use caution when looking at the EV space.
"EV names have run up sharply into 2Q on risk-reversal, broadly positive deliveries and other factors including funding milestones," Jonas wrote.
"We caution investors that EV market fundamentals (supply/demand) may look like that of the solar industry which say high growth and disappointing returns," he said.
Tesla Battery Workers Laid Off
While Tesla topped analysts' Q2 delivery views early last week, Bloomberg reported Friday the company could be laying off some battery production workers at its Shanghai plant. It is unclear how many workers may be let go, or the specific reasons behind the layoffs, according to Bloomberg.
Meanwhile, officials in Mexico said all the permitting for Tesla's new plant in the country are well underway, according to local reports. Officials told press there is no set date for when construction will begin, but that ground breaking could start "at any moment."
Tesla executives confirmed plans to build a Mexico factory in March. The company's long-awaited next-generation vehicle will be built at Giga Mexico, according to Tesla.
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Tesla Stock
TSLA shares are up around 120% in 2023 and 167% from their Jan. 6 low. However, Tesla stock is still well off its all-time high of 414.50, hit in November 2021.
On June 2, Tesla cleared a 207.79 buy point from what's either a cup or a double-bottom base. That was part of a record 13-session win streak for Tesla, with the last 12 coming on above-average volume. Shares paused in late June amid the broader market pullback but bounced from near the 21-day lines.
TSLA leapt 6.9% to 279.82 on July 3 following the strong Q2 delivery figures, clearing a brief pause to hit a nine-month high.
Tesla reports second-quarter financials on July 19.
Please follow Kit Norton on Twitter @KitNorton for more coverage.
