Tesla NASDAQ:TSLA shares rose about 2% on Tuesday morning after several Wall Street firms lifted their price targets ahead of the electric-vehicle maker's upcoming earnings report.
Morgan Stanley raised its price target on Tesla to $417 from $415 while maintaining a Hold rating. The firm cited stronger-than-expected second-quarter vehicle deliveries, which could support quarterly results when Tesla reports earnings on July 22.
Barclays also increased its Tesla target to $370 from $360 and kept an Equal Weight rating. Tesla delivered about 480,000 vehicles during the second quarter, exceeding analyst expectations of roughly 406,000 units and marking a 25% increase from a year earlier.
Wells Fargo lifted its Tesla target to $130 from $125 but maintained its Sell rating. The firm said Tesla's delivery performance may support quarterly earnings, although rising costs for materials such as lithium, copper and memory chips could weigh on margins.
Analysts said investors remain focused on Tesla's artificial intelligence initiatives, including robotaxi expansion, Full Self-Driving technology and Optimus humanoid robots. Those projects are expected to be key topics during Tesla's July 22 earnings call.