Wall Street analysts now unanimously believe that after a difficult period and multiple legal disputes sparked by CEO Musk, electric vehicle manufacturer Tesla may be preparing for a rebound.

Over the past year, investors have been waiting for an opportunity for Tesla's stock price to rebound. Tesla's sales have decreased by 15% in the past 12 months, and delivery volume has also declined for two consecutive quarters. However, the latest data exceeded analysts' expectations, reaching 443,956 vehicles, higher than the previously predicted 436,000 vehicles.

Q2 delivery volume exceeded expectations

On Wednesday, boosted by higher than expected delivery in the second quarter, Tesla's stock price continued to rise, closing up more than 6% and closing up for seven consecutive days, setting a record for the longest consecutive rise since June 2023. Since the close on June 24th, Tesla's stock price has risen by nearly 34.95%, almost recovering all of this year's decline.

Energy storage becomes a highlight

Analysts believe that as investors begin to pay attention to the development of artificial intelligence (AI), these data may indicate that Tesla's good times are about to come. Morgan Stanley even described Tesla's performance as "regaining its form" in its latest report.

Morgan Stanley stated that two weeks ago, clients were still preparing for shareholders to veto Musk's 2018 compensation plan, believing it could lead to changes in management and strategy, and exacerbate negative news for months. However, now customers are beginning to inquire about the second quarter performance and the positive catalysts that will follow.

In addition, Tesla's energy storage sales reached a historic high in the second quarter. Morgan Stanley's strategist stated that higher energy storage sales are a notable update as it shows that Tesla can benefit from the rising energy demand brought about by the AI boom.

They wrote in the report that as the new generation of artificial intelligence accelerates the growth of energy demand, power generation, and data center investment, they believe investors will begin to pay more attention to Tesla Energy.

Morgan Stanley has reiterated its overweight rating on Tesla's stock, with a target price of $310, which means there is still about 26% room for the stock to rise.

Autonomous taxis are another key area

Garrett Nelson, Senior Equity Strategist at CFRA Research, stated that since the annual meeting in mid June, Tesla's stock price has continued to rise in a positive momentum. Nelson believes that Musk has successfully shifted investors' focus to long-term opportunities in artificial intelligence, robotics, energy storage, and other business lines, reducing their focus on short-term challenges.

He added that Wall Street is currently focused on Tesla's Robotaxi project, and Musk has been discussing it for several months, stating that it may be a huge driving force for future growth.

CFRA maintains a buy rating for the stock and has raised its target price to $250 per share.

After delivering data beyond expectations, some strategists became more optimistic. Keith Fitz Gerald, the head of Keith Fitz Gerald Research, stated that the stock will double or even triple in the coming years. And emphasize that it is still in its early stages. This is not only about electricity, but also about robots. He believes that Tesla may be currently the most undervalued AI stock in the world.

Dan Ives, a renowned strategist at the US investment bank Wedbush, previously stated that Tesla's stock price may rise significantly in the second half of this year due to the launch of Robotaxi.

Wedbush reiterated Tesla's outperformance rating and raised its target stock price to $300 per share. Ives stated that in the most optimistic scenario, Tesla's stock price may rebound to $400 by the end of this year, up 63% from current levels.

He said the key is for Wall Street to recognize Tesla as the most undervalued AI stock in the market. In short, they believe that Tesla's worst-case scenario has passed, and the story of electric vehicle demand is returning. Tesla will usher in a new technological revolution before the historic Robotaxi Day on August 8th.