Wedbush remains bullish on Tesla after better-than-feared Q2 delivery numbers

Wedbush notes that Tesla (TSLA) announced its Q2 delivery numbers, which came in at 384k vehicles roughly in line with the Street’s official 385k vehicle estimate and above Street whisper numbers of 365k vehicles, which was better than feared as the company saw success with its Model Y refresh cycle in the quarter. While the company has seen significant weakness in China in previous quarters given the rising competitive landscape across EVs, Tesla saw a rebound in June with sales increasing for the first time in eight months reflecting higher demand for its updated Model Y as deliveries in the region are starting to slowly turn a corner with China representing “the heart and lungs” of the Tesla growth story, Wedbush adds. If Musk continues to lead and remain in the driver’s seat, the firm believes Tesla is on a path to an accelerated growth path over the coming years with deliveries expected to ramp in the back-half of 2025 following the Model Y refresh cycle. Wedbush has an Outperform rating on the shares with a price target of $500.