Investor's Corner
Tesla soars past $700 with help from optimism after strong EV sales in China
Tesla stock (NASDAQ: TSLA) soared past the $700 threshold earlier today after strong electric vehicle sales figures in China from rival companies promoted optimism regarding Tesla’s potential July delivery figures. Fueled by a recent price reduction of the Model 3 Standard Range+ variant in July, forward-looking projections could hint toward a strong July for Tesla, building upon the robust Q2 figures the company established in China.
Tesla has not surpassed the $700 level since late April 2021 and has experienced a tumultuous 2021 due to supply chain shortages and unexpected bottlenecks in production due to excessive demand. Tesla has continued to build upon a streak of quarters that have resulted in increases in production and delivery rates, along with eight straight marks of profitability following last week’s Q2 2021 Earnings Call.
But, news that helps Tesla stock is not always directly related to Tesla’s performance as an individual automaker. Reports out of China this morning were bullish for the EV sector as a whole, as domestic automakers Nio, Li Auto, and Xpeng reported strong delivery figures for July. Nio accumulated 7,931 deliveries, bringing its 2021 total to 49,887, a number that eclipses its 2020 delivery figures for the entire year. It was not a record month for Nio, as June had 152 more vehicle deliveries, but the overall outlook is increasing due to Year-to-Date figures thus far. Nio stock rose 3% on news of its growth story. Li Auto was up 3.2% on news that it delivered 8,589 vehicles in July, a record for the company. Xpeng also traded at a gain of 7.3% and established a new monthly record with 8,040 vehicle deliveries.
This brings in the potential momentum builder for Tesla. The company has regularly been atop the vehicle sales leaderboard in China with the Model 3 and Model Y, dominating much of the competition and only being eclipsed by the Wuling HongGuang Mini EV, which is priced significantly lower due to less standard features. As domestic EV companies in China continue to build upon their growing sales figures monthly, Tesla, with its strong consumer base, favorable vehicle quality, and wide range of options, is looking to set another month aside with delivery figures that could rival its own records.
In June, Tesla delivered 33,155 vehicles, just a few hundred units off of its strong May, which yielded 33,463 cars making their way to customers. The small slide in delivery figures is not a concern, however. The CPCA recently stated that the EV market is expected to more than double to 2.4 million units this year, setting Tesla up for a continuing growth trend as the second half of 2021 kicks off. Unlike other automakers, Tesla does not report its delivery figures. They are instead compiled by the CPCA and will be published later this month. Expectations are that Tesla could deliver strong figures after reducing the price of its SR+ Model 3 in July.
Tesla Model 3 Standard Range Plus becomes even more competitive in China
The bullish trend of the EV market in China continues to work in favor of Tesla, which has established itself as the main player in the electric vehicle market in the country.
At the time of writing, Tesla stock was trading at $716.27, up 4.23%.
Disclosure: Joey Klender is a TSLA Shareholder.
What do you think? Let us know in the comments below, or be sure to email me at joey@teslarati.com or on Twitter @KlenderJoey.
Investor's Corner
Tesla analyst maintains $500 PT, says FSD drives better than humans now
The team also met with Tesla leaders for more than an hour to discuss autonomy, chip development, and upcoming deployment plans.
Tesla (NASDAQ:TSLA) received fresh support from Piper Sandler this week after analysts toured the Fremont Factory and tested the company’s latest Full Self-Driving software. The firm reaffirmed its $500 price target, stating that FSD V14 delivered a notably smooth robotaxi demonstration and may already perform at levels comparable to, if not better than, average human drivers.
The team also met with Tesla leaders for more than an hour to discuss autonomy, chip development, and upcoming deployment plans.
Analysts highlight autonomy progress
During more than 75 minutes of focused discussions, analysts reportedly focused on FSD v14’s updates. Piper Sandler’s team pointed to meaningful strides in perception, object handling, and overall ride smoothness during the robotaxi demo.
The visit also included discussions on updates to Tesla’s in-house chip initiatives, its Optimus program, and the growth of the company’s battery storage business. Analysts noted that Tesla continues refining cost structures and capital expenditure expectations, which are key elements in future margin recovery, as noted in a Yahoo Finance report.
Analyst Alexander Potter noted that “we think FSD is a truly impressive product that is (probably) already better at driving than the average American.” This conclusion was strengthened by what he described as a “flawless robotaxi ride to the hotel.”
Street targets diverge on TSLA
While Piper Sandler stands by its $500 target, it is not the highest estimate on the Street. Wedbush, for one, has a $600 per share price target for TSLA stock.
Other institutions have also weighed in on TSLA stock as of late. HSBC reiterated a Reduce rating with a $131 target, citing a gap between earnings fundamentals and the company’s market value. By contrast, TD Cowen maintained a Buy rating and a $509 target, pointing to strong autonomous driving demonstrations in Austin and the pace of software-driven improvements.
Stifel analysts also lifted their price target for Tesla to $508 per share over the company’s ongoing robotaxi and FSD programs.
Investor's Corner
Tesla wins $508 price target from Stifel as Robotaxi rollout gains speed
The firm cited meaningful progress in Tesla’s robotaxi roadmap, ongoing Full Self-Driving enhancements, and the company’s long-term growth initiatives.
Tesla received another round of bullish analyst updates this week, led by Stifel, raising its price target to $508 from $483 while reaffirming a “Buy” rating. The firm cited meaningful progress in Tesla’s robotaxi roadmap, ongoing Full Self-Driving enhancements, and the company’s long-term growth initiatives.
Robotaxi rollout, FSD updates, and new affordable cars
Stifel expects Tesla’s robotaxi fleet to expand into 8–10 major metropolitan areas by the end of 2025, including Austin, where early deployments without safety drivers are targeted before year-end. Additional markets under evaluation include Nevada, Florida, and Arizona, as noted in an Investing.com report. The firm also highlighted strong early performance for FSD Version 14, with upcoming releases adding new “reasoning capabilities” designed to improve complex decision-making using full 360-degree vision.
Tesla has also taken steps to offset the loss of U.S. EV tax credits by launching the Model Y Standard and Model 3 Standard at $39,990 and $36,990, Stifel noted. Both vehicles deliver more than 300 miles of range and are positioned to sustain demand despite shifting incentives. Stifel raised its EBITDA forecasts to $14.9 billion for 2025 and $19.5 billion for 2026, assigning partial valuation weightings to Tesla’s FSD, robotaxi, and Optimus initiatives.
TD Cowen also places an optimistic price target
TD Cowen reiterated its Buy rating with a $509 price target after a research tour of Giga Texas, citing production scale and operational execution as key strengths. The firm posted its optimistic price target following a recent Mobility Bus tour in Austin. The tour included a visit to Giga Texas, which offered fresh insights into the company’s operations and prospects.
Additional analyst movements include Truist Securities maintaining its Hold rating following shareholder approval of Elon Musk’s compensation plan, viewing the vote as reducing leadership uncertainty.
@teslarati Tesla Full Self-Driving yields for pedestrians while human drivers do not…the future is here! #tesla #teslafsd #fullselfdriving ♬ 2 Little 2 Late – Levi & Mario
Investor's Corner
Tesla receives major institutional boost with Nomura’s rising stake
The move makes Tesla Nomura’s 10th-largest holding at about 1% of its entire portfolio.
Tesla (NASDAQ:TSLA) has gained fresh institutional support, with Nomura Asset Management expanding its position in the automaker.
Nomura boosted its Tesla holdings by 4.2%, adding 47,674 shares and bringing its total position to more than 1.17 million shares valued at roughly $373.6 million. The move makes Tesla Nomura’s 10th-largest holding at about 1% of its entire portfolio.
Institutional investors and TSLA
Nomura’s filing was released alongside several other fund updates. Brighton Jones LLC boosted its holdings by 11.8%, as noted in a MarketBeat report, and Revolve Wealth Partners lifted its TSLA position by 21.2%. Bison Wealth increased its Tesla stake by 52.2%, AMG National Trust Bank increased its position in shares of Tesla by 11.8%, and FAS Wealth Partners increased its TSLA holdings by 22.1%. About 66% of all outstanding Tesla shares are now owned by institutional investors.
The buying comes shortly after Tesla reported better-than-expected quarterly earnings, posting $0.50 per share compared with the $0.48 consensus. Revenue reached $28.10 billion, topping Wall Street’s $24.98 billion estimate. Despite the earnings beat, Tesla continues to trade at a steep premium relative to peers, with a market cap hovering around $1.34 trillion and a price-to-earnings ratio near 270.
Recent insider sales
Some Tesla insiders have sold stock as of late. CFO Vaibhav Taneja sold 2,606 shares in early September for just over $918,000, reducing his personal stake by about 21%. Director James R. Murdoch executed a far larger sale, offloading 120,000 shares for roughly $42 million and trimming his holdings by nearly 15%. Over the past three months, Tesla insiders have collectively sold 202,606 shares valued at approximately $75.6 million, as per SEC disclosures.
Tesla is currently entering its next phase of growth, and if it is successful, it could very well become the world’s most valuable company as a result. The company has several high-profile projects expected to be rolled out in the coming years, including Optimus, the humanoid robot, and the Cybercab, an autonomous two-seater with the potential to change the face of roads across the globe.
@teslarati Tesla Full Self-Driving yields for pedestrians while human drivers do not…the future is here! #tesla #teslafsd #fullselfdriving ♬ 2 Little 2 Late – Levi & Mario
Tesla on track to break Volkswagen’s historic record in Norway: report
Tesla Full Self-Driving lands in a new country, its 7th
