Wedbush analyst Dan Ives says "the worst is in the rear view mirror" for the EV-maker following the beat.
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Tesla shares spiked as much as 10% on Tuesday after second-quarter deliveries beat estimates.
The EV-maker delivered 444,000 units during the period, exceeding estimates of 438,000. Wedbush Securities says it's a sign the company is finally on the upswing after a difficult period.
"This was a huge comeback performance from Tesla and Musk with the Street expecting a clear miss this quarter with EV demand still choppy globally," analyst Dan Ives wrote on Tuesday, citing that deliveries outpaced what even bullish investors hoped for.
He added: "In a nutshell, the worst is in the rear view mirror for Tesla as we believe the EV demand story is starting to return to the disruptive tech stalwart ahead of a historical Robotaxi Day on August 8th."
Tesla stock was down 16% in 2024 through Monday's close, although Tuesday's move trimmed that to an 8% year-to-date loss.
Ives thinks the comeback will continue in the second half of 2024. Apart from its deliveries win, he notes that Tesla also enjoyed a second quarter "mini rebound" in China, which has brought about price stabilization.
Another source of momentum will come on August 8, when Tesla hosts its Robotaxi day, Ives said. The firm is set to unveil its long-teased autonomous taxi vehicle during the event, which Ives says is a demonstration that the company is following on its word to unleash full self-driving technology.
"We continue to believe that Tesla is more of an AI and robotics play than a traditional car company.....now the rubber meets the road as the Street anticipates August 8th as a key linchpin day for the Tesla story," Ives said.
Not everyone on Wall Street shares Ives' optimism. Some have warned that Tesla faces as much as a 91% correction, given lasting industry headwinds and problems in the firm's own business approach.
