Tesla stock rose in premarket trading on Wednesday, signaling the possibility of it adding to its six-session winning streak.
On Tuesday, the stock tacked on 10.20% by the close and settled at $231.26, marking the highest level since Jan. 10. The upside came after the electric vehicle maker reported second-quarter deliveries that exceeded the lowered consensus forecasts. While a section of analysts expressed apprehension regarding the second straight quarterly sales drop, bulls on the Street said sales could have bottomed, positioning the company on track for a second-half rebound.
The reduction in inventories and strong stationary energy storage business also generated a positive reaction from analysts.
The unanimous view is that the ultra-easy financing option provided by the company to facilitate sales was primarily responsible for the upside relative to the estimate.
Following the quarterly deliveries update, Wedbush analyst Daniel Ives upped his price target from $275 to $300, with a new bull-case price target of $400 for 2025. CANACCORD Genuity's George Gianarikas also lifted his price target for Tesla from $222 to $254.
If the uptrend is sustained in the truncated session on Wednesday, the stock remains on track to backfill a gap from mid-October 2023 and push toward $242.
In premarket trading, the stock climbed 3.5% to $239.42, according to Benzinga Pro data.
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