HSBC Maintains ‘Reduce’ on Tesla (TSLA)— Warns June Run Rate Isn’t the New Normal

Tesla, Inc. (NASDAQ:TSLA) is one of the Top 10 AI Stocks in the SpotlightOn July 3, HSBC analyst Michael Tyndall reiterated a “Reduce” rating on the stock with a $120.00 price target.

The investment bank pointed out how Tesla’s second-quarter volumes have increased 14% quarter-over-quarter, which has been broadly in-line with consensus estimates. This is despite retail figures in major markets growing only 2% quarter-over-quarter.

“Based on retail figures in the major markets we track, June deliveries were exceptionally strong. It accounted for 47% of Q2 deliveries vs 41–44% historically. It is difficult to explain this sales bump. Important for us – is that run‑rate of 170,000–180,000 units per month is unlikely to become the new normal.”

Tesla (TSLA) Downgraded by HSBC — Analyst Cautions on Sales Surge and Model Lineup

The firm has questioned the sustainability of this delivery pace, suggesting that even though third-quarter sales may witness pulled-forward demand ahead of a new tax bill, the June run rate is unlikely to become “the new normal.”

The firm is cautious about Tesla’s volume development, static model portfolio, increasing competition, and the absence of a promised and more affordable model.

Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company that leverages advanced artificial intelligence in its autonomous driving technology and robotics initiatives.

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