The new institution is firmly promoting and $Tesla (TSLA.US)$The overnight stock price has skyrocketed.

On Wednesday's US stock market, Tesla rose sharply by 4.8%, pushing the stock price to the highest level in nearly four months, outperforming all stocks in the S&P 500 on that day.

On the news front, Tesla will release global delivery data for the second quarter next week. Despite low market expectations, Stifel remains bullish, stating that the new Model 3 and upcoming refreshed Model Y can boost sales. Supported by technological advantages, the company still has ample room for growth in the future.

Stifel: Long-term profit expectations have bottomed out.

On Tuesday night local time, Stifel analyst Stephen Gengaro released a report titled "The Future is Closer than We Think", which covers Tesla for the first time and gives it a buy rating with a target price of $265, meaning the stock still has about 35% upside from the latest closing price.

Gengaro believes that although sales of electric vehicles have slowed down recently, Tesla's development momentum will gradually improve with the expansion of the supercharging network, the launch of affordable models, and the overall improvement of technology.

From the perspective of financial and profit indicators, Tesla's long-term profit expectations have bottomed out. Gengaro pointed out that over the past 12 months, the consensus expectations for Tesla's EBITDA in 2024 have dropped by 41%, and those for EBIT have dropped by 46%. As "negative expectations are gradually revised", the stock price may be boosted to some extent.

Gengaro is particularly bullish on Tesla's core technological superiority, believing that the company has no competitors in the field of electric vehicles:

"Traditional automakers do not have the technological knowledge needed for electric vehicles, and they are far behind in this electrification game."

"And they don't have a CEO like Musk."

In Gengaro's view, rather than saying that Tesla is an electric vehicle company, it is more like a technology company on par with Apple, Amazon, and Microsoft, which also benefits from the AI ​​wave and has long-term growth prospects (2025-2027).

The US market's "dominant position" may not be guaranteed.

Since the beginning of this year, the continuous slowdown in Tesla's sales has become an indisputable fact. With the new quarterly delivery data about to be released, Tesla may even lose its "dominant position" in the US market.

Since the launch of Model 3 in 2018, Tesla's sales have always accounted for more than half of the market share of electric vehicles in the United States, but this advantage is being overtaken.

According to the latest data from automotive industry data provider Marklines, as of May, Tesla's US sales for the past 12 months were about 618,000 vehicles, while the total sales of other brands' pure electric vehicles were about 597,000, which is extremely close.

From the delivery data in the first quarter, Tesla's sales in the United States fell by 13% year-on-year, while Hyundai and Kia's sales increased by 56% and 86%, respectively.

This means that the second-quarter delivery data may not look good either. According to FactSet data, analysts currently expect Tesla's global deliveries in the second quarter to be 436,000 vehicles, a 6.5% decrease from last year's 466,000 vehicles.

Since the beginning of this year, Tesla's stock price has fallen by more than 20%.

Edited by Jeffrey