Tesla (TSLA) shares rose approximately 3% to $405.11 in early trading Monday, recouping a portion of the prior week's decline. The rebound was fueled by the expansion of the company's robotaxi network into Miami and continued analyst optimism following a second-quarter delivery beat.
The broader market also provided tailwinds, with the S&P 500 gaining 0.6% and the Nasdaq climbing about 1%, as technology stocks broadly recovered from recent selling pressure.
Robotaxi Expansion to Miami
Tesla announced that its autonomous ride-hailing service became available in Miami on July 3, marking the third state where the service is operational. The company initially launched robotaxis in Austin, Texas, roughly a year ago and has since expanded to other Texas cities. Tesla also operates a rideshare service in San Francisco.
The Miami rollout is part of CEO Elon Musk's broader strategy to position artificial intelligence, autonomous driving, and robotics as Tesla's next major growth engines. However, the company has cautioned that robotaxis are not expected to meaningfully contribute to revenue or earnings until at least 2027, as it prioritizes safety and gradual expansion.
For more details on the Miami launch and fleet size comparisons, see Tesla Launches Robotaxi Service in Miami, Fleet Size Trails Waymo in Texas.
Q2 Deliveries Exceed Expectations
Investor sentiment improved after Tesla reported second-quarter global vehicle deliveries of 480,126 units, a 25% increase year over year and above Wall Street estimates. The performance followed a 6.3% year-over-year delivery increase in the first quarter.
Additionally, Tesla's energy storage business posted a 41% year-over-year increase in deployments, reaching 13.5 gigawatt-hours during the quarter. Baird analysts highlighted this as a positive development, noting that while energy deployments can be uneven, the results support their constructive outlook on the company.
Morgan Stanley analyst Andrew Percoco noted that Tesla's Q2 deliveries exceeded sell-side consensus by 18%, representing the strongest vehicle growth since Q3 2023. The firm maintained an Equal Weight rating and $415 price target. Baird reiterated its Outperform rating and $522 price target.
Gary Black, managing director of The Future Fund, expects further upside as analysts revise earnings estimates upward. However, he cautioned that Tesla's valuation remains demanding, with the stock trading at a 2026 price-to-earnings multiple above 200 times, despite expected long-term EPS growth of roughly 35% between 2027 and 2032. Black also suggested that higher gasoline prices during the quarter may have boosted vehicle demand more than enthusiasm for autonomous driving.
For context on the prior week's selloff, see Tesla Stock Drops 3% Despite Record Deliveries: Profit-Taking and AI Focus Weigh.
Outlook and Key Dates
Tesla is scheduled to report full second-quarter financial results after the market closes on July 22. Investors will be watching for updates on vehicle margins, energy storage profitability, and progress on autonomous driving initiatives.
While the stock's near-term recovery is supported by delivery strength and robotaxi expansion, the high valuation and gradual pace of autonomous deployment remain key considerations for investors.
This article is for informational purposes only and does not constitute financial advice.
