Tesla has received a big share price target upgrade from Jefferies, though the US bank still does not believe the issues that sank the share price last year have gone away.
On the plus side, this coming (second) quarter should be the low point of electric vehicle margins.
Tesla also has an edge in the use of AI-based autonomy over its rivals and in battery technology, but concerns remain over self-driving and stationary storage.
Jefferies expects second-quarter revenue of US$24.7bn, up 6% quarter-on-quarter and 46% year-on-year.
Underlying earnings should be around US$2.68bn, with gross auto margins at 18.6% or 0.4% below the first three months.
The new price target is US$265, more in line with the current share price, but the rating remains a hold.