Elon Musk's Tesla Inc (NASDAQ:TSLA) has got its 'mojo back', according to Wedbush, the tech-focused investment bank and dedicated follower of the EV giant.
The comments were made in the wake of the car maker's hotly anticipated second-quarter delivery data, which showed it shipped a higher-than-expected 443,956 vehicles globally in the three months to June 30.
While this was down 4.7% from a year earlier, it was slightly above the Street's expectation for 439,302 and represented a significant rebound from a disappointing 386,810 in the first quarter.
If the price action is anything to go by, Wedbush got its two-word analysis spot on. The shares ended Tuesday 10% higher and, pre-market Wednesday, are indicated to open up a further 2.3% at $236.77.
Based on the latest deliveries print, Wedbush has pushed up its price target for the stock to $300 from $275. Its new 'bull case' is $400.
"With the majority of price cuts in the rear-view mirror and demand stabilization globally for EVs especially in China, we believe Tesla's march towards two million units annual trajectory should be reached over the coming quarters with clear momentum and easier comps for 2025," it said in a short note reiterating its 'outperform' rating.
The Wedbush note added: "The key for Tesla's stock is the Street recognizing that Tesla is the most undervalued AI play in the market in our view with a historical Robotaxi Day ahead for Musk and Tesla on August 8 that will lay the yellow brick road to FSD and an autonomous future."