Wells Fargo has reiterated its Equal Weight rating on Tesla (NASDAQ:TSLA) and raised its 12-month price target on the stock to $256.00 (previously $170.00) in anticipation of the electric vehicle maker’s upcoming 2Q earnings release and webcast.
Tesla is scheduled to announce its 2Q results on Wednesday, July 19th. According to Wells Fargo, the automaker is expected to report an EPS of $0.75, slightly below the consensus estimate of $0.79. Analysis suggests that the average selling prices (ASPs) for Tesla vehicles will decrease to $46K in 2Q, compared to $47K in Q1. Furthermore, Wells Fargo predicts a quarter-on-quarter decrease of approximately 4.5% in the prices of Models Y and 3, indicating an overall decline of around 13%.
To account for the Q2 price cuts, Wells Fargo adjusted its EPS estimates for Tesla. They lowered the 2023 estimates from $3.40 to $3.25, 2024 estimates from $3.75 to $3.60, and 2025 estimates from $3.85 to $3.75. However, they raised the 2026 estimates from $3.75 to $4.30 based on the ramp-up of Model 2 and charging network growth.
