Tesla stock rises 6%, extends rally with 'Mojo back for Musk' following latest delivery data

Tesla stock surges over 5% after impressive delivery results, gaining 60% since April low. Analysts optimistic about future growth.

Tesla stock (TSLA) continued its upward trend on Wednesday, surging more than 5% following a 10% jump the previous day. This increase came as Wall Street analysts digested the electric carmaker's impressive quarterly vehicle delivery results, which surpassed expectations. Since hitting a recent low in late April, Tesla stock has surged by over 60%.

In the second quarter, Tesla announced that it had produced around 411,000 vehicles and delivered nearly 444,000 cars, exceeding consensus estimates and showing growth from the previous quarter. Despite a decline in year-over-year deliveries, analysts remained optimistic about the report, suggesting that the electric vehicle (EV) industry may be performing better than anticipated.

Citi analysts expressed their confidence in Tesla shares and the broader EV sentiment, predicting an improvement in both compared to the negative sentiment of the past six months. Meanwhile, Dan Ives of Wedbush Securities described the company's deliveries as a significant turning point in the bullish case for Tesla, highlighting its undervalued position in the artificial intelligence (AI) market.

With the upcoming Robotaxi event on August 8, Ives expects Tesla to pave the way for full self-driving capabilities and an autonomous future. Morgan Stanley's Adam Jonas labeled Tesla's results as the "1st Positive Surprise of the Year," emphasizing the company's strong performance in the energy storage business, which achieved its highest quarterly deployment to date.

Despite facing challenges from Chinese competitors and a slowdown in EV demand in the US, Tesla has taken steps to reduce costs, including a workforce reduction earlier this year. CEO Elon Musk acknowledged the ongoing struggles with near-term demand and sales during the recent shareholder meeting, hinting at potential price cuts to stimulate sales.

While the latest results were positive, some analysts, like Barclays' Dan Levy, remain cautious about the overall macroeconomic environment for EVs. Levy maintains an EqualWeight rating on the stock and a price target of $180, highlighting the uncertainties surrounding further price cuts and fundamental questions about demand in the EV market.

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