Tesla shares rise for 11th straight session as Goldman raises price target

Shares are up 44% during the streak

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  • Tesla shares continued their winning streak on Wednesday as markets continued to react positively to last week’s encouraging delivery numbers.

  • The stock has risen 44% during an 11-session winning streak.

  • Goldman Sachs analysts raised their price target on the stock but maintained their neutral rating.

  • Investors are looking ahead to Tesla’s earnings report later this month, as well as an event next month at which Elon Musk announced that Tesla will introduce its “robotaxi.”

Shares of Tesla (TSLA) closed higher for an 11th straight session on Wednesday after analysts at Goldman Sachs raised their price target on the electric car giant’s stock.

The stock has been on a winning streak since the release of its second-quarter production and delivery numbers, which beat analysts’ expectations. The recent string of gains has allowed Tesla’s stock to move back into the green for the year to date.

Despite increasing competition in the electric vehicle market, analysts have said Tesla maintains a favorable position in the sector thanks to its existing customer base, diverse products from vehicles to software and charging technology, and plans to introduce lower-cost models next year.

Goldman analysts wrote Wednesday that a cheaper model could have a positive impact on Tesla’s market share. The analysts said their data suggests that about half of the car-buying market costs $30,000 or less, and that a cheaper vehicle could help Tesla compete with Chinese rivals that offer cheaper electric vehicles.

Goldman analysts pointed to Tesla’s evolving self-driving software and the planned launch of robotaxis next month as future growth areas. However, they also said it would be some time before autonomous taxis are widely available or before traditional Tesla vehicles are fully autonomous.

Goldman raised its price target on Tesla to $248 from $175, below Tesla’s current share price, but maintained a neutral rating on the stock.

“While we continue to believe Tesla is well positioned for long-term growth given its strong position in the electric vehicle and clean energy markets, we expect weaker market conditions to weigh on earnings in the near and medium term,” the analysts wrote.

Tesla is expected to report earnings after the closing bell on July 23. At that time, the company could provide more details about the robotaxi’s debut, currently scheduled for August 8.

Tesla shares rose 0.4% on Wednesday to close at $263.26. The stock has risen 44% in the past 11 sessions.

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