Tesla (NASDAQ:TSLA) delivered 74,212 China-made vehicles in June, a fall of 4.8% from the previous year, according to data from the China Passenger Car Association (CPCA). However, the delivery numbers reflect a considerable jump from the previous month, when Tesla delivered 42,508 Model 3 and Model Y vehicles in the country.
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In June, TSLA exported 19,468 cars, down 46% and 45% from April and May, respectively. Lower exports were expected as Tesla typically prioritizes production for exports in the first half of a quarter, while the second half focuses on domestic deliveries.
Interestingly, demand for TSLA vehicles saw a significant increase in 2023 owing to massive price discounts and improved marketing strategies. In the first six months, the automaker sold more than 475,000 cars from the Gigafactory Shanghai.
However, Warren Buffet-backed BYD (BYDDY) continues to give stiff competition to Tesla in the world’s largest automobile market, as it sold 1,255,637 NEV vehicles in the first half of 2023, up by 97.6% year-on-year.
TSLA’s Upcoming Q2 Release
Tesla is scheduled to release its second-quarter earnings on July 19. The Street currently expects TSLA to post earnings of $0.79 in Q2, higher than the prior-year quarter figure of $0.76. Further, analysts project net revenue of $24.32 billion, up 43.7% from the same quarter last year.
Ahead of the release, Jefferies analyst Philippe Houchois believes the company’s profit margins will bottom out in the second quarter due to the price cuts announced earlier in 2023.
However, the impressive delivery report for the second quarter resulted in the analyst lifting his earnings estimates and price targets. Houchois anticipates Tesla to report 2023 earnings of $2.83 per share, compared with his prior estimate of $2.71. The analyst maintained a Hold rating on the stock but raised his price target to $265 from $185 per share.
Is Tesla a Buy or Sell?
Tesla stock has 13 Buy, 12 Hold, and five Sell recommendations for a Moderate Buy consensus rating. Meanwhile, analysts’ price target of $235.08 implies a downside of 12.9%. It is noteworthy that TSLA stock has gained about 150% so far this year.
Investors should note that Daniel Ives of Wedbush is the most accurate analyst for TSLA stock, according to TipRanks. Copying Arment’s trades on TSLA stock and holding each position for one year could result in 70% of your transactions generating a profit, with an average return of 13.88% per trade.
