Following a rough session on Thursday, Tesla (NASDAQ:TSLA) is on track to enter the weekend on a high note. TSLA stock moved up almost 4% in late Friday trading, buoyed by Citi’s price target boost. That said, sustained growth in the electric vehicle manufacturer may require significant catalysts.
Earlier today, Citi lifted its price target of TSLA stock to $274. Previously, analysts there published a per-share price target of $182. However, the experts maintained a “neutral” rating on the equity. Per Investing, Citi “attributes the adjustment to a more constructive view on near-term sentiment.”
In the trailing month, TSLA stock rocketed higher by approximately 40%. Primarily, Tesla revealed that it delivered 443,956 vehicles in the second quarter. In contrast, analysts targeted deliveries to land at 439,000 units. The figure suggested that EV demand is stronger than headlines implied.
At the same time, the latest deliveries represented a 4.8% decline from the year-ago quarter’s count of 466,140. Moreover, reports came out that Tesla will delay its event for its robotaxi to October rather than in August as originally broadcast.
As a result, TSLA stock suffered a severe decline on Thursday. In the trailing five sessions, it’s up around 1%.
Next Moves Could be Critical for TSLA Stock
Interestingly, while Citi believes that TSLA stock may run higher in the near term – a real possibility considering Thursday’s “discount” – it’s still on the fence regarding a long-term bullish narrative. The analysts stated the following:
“The Q2 delivery beat was also encouraging, which prompts increased estimates and supports Citi’s underlying call for improving EV sentiment this summer. However, the firm believes core EV fundamentals alone are unlikely to support significantly further upside from here in Tesla shares absent new product and AI catalysts.”
As it turns out, one of the catalysts could very well be the aforementioned robotaxi. Increasingly, companies are investing in automated mobility solutions. Per MarketsandMarkets, the global robotaxi market reached a valuation of $400 million last year. However, the sector could hit $45.7 billion by 2030, implying a compound annual growth rate (CAGR) of 91.8%.
That may be another reason why TSLA stock tumbled so badly regarding the potential robotaxi delay. It’s not just about moving the event back a few months. With competition rising in the EV space amid a challenging demand backdrop, Tesla needs something to stand out. Delaying a possibly critical catalyst doesn’t help in the confidence department.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
