Tesla (NASDAQ:TSLA) has reported a decline in quarterly deliveries for the first time in two years. The electric vehicle (EV) leader released its delivery statistics for the second quarter of 2022 on July 2. The numbers were in line with the expectations that Wall Street analysts recently lowered due to mounting concerns. This doesn’t look like good news at first glance. But TSLA stock has been rising steadily, albeit slowly, all day. While Tesla did not exceed expectations, it did meet the “line in the sand” set by Wedbush analyst Dan Ives.
The Wall Street Mark for TSLA Stock
As the all-too-important delivery report approached, many experts lowered their TSLA stock price targets. It’s not hard to see why. The first half of 2022 has been turbulent for Tesla, with Elon Musk reducing his workforce and expressing strong fears about the economy. He recently described the company’s Berlin and Texas Gigafactories as “gigantic money furnaces.”
But one analyst took an interesting view of the looming delivery declines. Dan Ives is a notorious Tesla bull and expert on the stock. On June 30, he tweeted the following:
On an apples-to-apples basis when factoring in the Giga Shanghai shutdown, we believe the line in the sand for deliveries is roughly 250k globally with anything above 260k viewed positively by the Street. We believe Model Y/3 units in the 240k/245k as "good enough" by the Street
— Dan Ives (@DivesTech) June 30, 2022
The thread goes on, but Ives’s cases centers on one principle: if Tesla reported more than 240,000 deliveries, it would satisfy Wall Street enough to keep TSLA stock in the green. Tesla has done that, producing 258,580 EVs and delivering 254,695 of them. It has passed the “line the sand” Ives drew when he made the bullish case for TSLA post-Q2 deliveries.
Ives recently issued a new take on TSLA stock. With the delivery numbers in, he is maintaining an “outperform” rating and a price target of $1,000. The Fly reported, “While June delivery numbers were ‘ugly and nothing to write home about,’ the Street will be focused on the trajectory for the second half of the year and the overall demand picture staying firm.” This lines up well with Ives’s previous statements about Wall Street being focused on the road ahead for TSLA stock, not the disappointing Q2 deliveries.
InvestorPlace writer William White recently reported Ives isn’t the only analyst who sees TSLA as a buy. Experts from Oppenheimer and Deutsche Bank remain mostly bullish on TSLA stock. The Street is clearly focused on what it expects from Tesla in the coming quarters, not what it has seen in the current one.
The Road Ahead
Investors shouldn’t discount that Tesla has hit the Wall Street mark Ives laid out. It means Tesla’s Q2 deliveries are still “good enough.” The company has been plagued by macroeconomic headwinds for months, including supply chain constraints and factory shutdowns in China. But if Ives is correct, Wall Street is still willing to bet on the EV leader, even as it pauses production in Berlin.
If Tesla can outdo itself with deliveries in 2022 Q3 — and there’s no immediate reason to suspect it can’t — TSLA stock will be back on track. The path to growth is slow, as it demonstrated when the year began, but Tesla is proving to investors that it can do it.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.