Tesla stock fell 3.1% Wednesday despite recently increased stock price targets heading into the company’s second-quarter earnings report.
Blame the tech wreck.
The drop came even after Barclays analyst Dan Levy raised his Tesla price target on Wednesday to $225 from $180.
Target price increases can help stocks, but it wasn’t enough to overcome the technology selloff. The Nasdaq Composite was down 2.8% and Nvidia shares fell 6.6%.
Levy kept his Hold rating on shares and still has concerns. He acknowledges the “potentially disruptive opportunity” from robotaxis but adds success in that business isn’t certain, leaving investors with an all-or-nothing bet on self-driving cars.
Levy’s target raise is one of many hikes since Tesla reported better-than-expected second-quarter vehicle deliveries. The average analyst price target has risen to about $204 from $184 since the end of June, just before the delivery report, according to FactSet.
Earnings estimates are higher, too. The average estimate for second-quarter earnings per share is now 61 cents, up from 58 cents. The average estimate for 2024 earnings per share is now $2.43, up from $2.39.
Higher estimates and target prices are positive for any stock. Coming into Wednesday treading, Tesla shares were already up almost 30% month to date.
On Tuesday, Tesla stock was down as much as 2.7% and up as much as 2.3%. Shares finished up 1.6%, rising for the second consecutive day since Musk endorsed former President Trump, and committed money to his reelection effort.