Tesla stock (TSLA) rose on Monday, recovering some of last week’s sharp losses after investors sold the stock despite a stronger-than-expected second-quarter delivery report.
The rebound came as the electric-vehicle maker expanded its robotaxi service to Miami, adding another city to its autonomous ride-hailing network.
Shares of Tesla climbed about 3% to $405.11 in early trading.
The move was also supported by broader market optimism, with the S&P 500 up 0.6% and the Nasdaq climbing around 1%.
Miami robotaxi launch marks latest expansion
The stock gained after Tesla announced that its robotaxi service became available in Miami from July 3, extending the company’s autonomous ride-hailing footprint beyond Texas.
The expansion makes Florida the third state where Tesla’s robotaxi operations are available.
The company launched its robotaxi service in Austin about a year ago and has since expanded to additional Texas cities. Tesla also operates a rideshare service in San Francisco.
The rollout forms part of Chief Executive Officer Elon Musk’s broader strategy to position artificial intelligence, autonomous driving, and robotics as Tesla’s next major growth engines.
Investors have closely watched the pace of Tesla’s robotaxi expansion, although the rollout has remained gradual as the company prioritizes safety.
Tesla has said it does not expect robotaxis to become a meaningful contributor to revenue and earnings until at least 2027.
Delivery beat improves investor sentiment
Sentiment has also improved following Tesla’s second-quarter delivery report, which exceeded Wall Street expectations.
Tesla reported 480,126 global vehicle deliveries during the quarter, representing a 25% increase from a year earlier.
The company also reported that energy deployments rose 41%, extending the momentum of a business that has grown rapidly even as vehicle demand has fluctuated.
The second-quarter performance followed a 6.3% year-over-year increase in deliveries during the first quarter.
Gary Black, managing director of The Future Fund, said in a post on X that he expects Tesla shares to recover further as analysts revise their earnings forecasts.
“I expect TSLA stock to rebound this week as the sell-side climbs over one another to increase 2Q and FY’26 earnings ests,” Black said, adding that higher earnings projections “could boost TSLA price targets.”
Black nevertheless argued that Tesla’s valuation remains demanding.
He said the stock trades at a 2026 price-to-earnings multiple of more than 200 times despite expected long-term earnings-per-share growth of roughly 35% between 2027 and 2032.
According to Black, that “continues to suggest TSLA is fully priced.”
He also suggested that higher gasoline prices during the quarter may have contributed more to stronger vehicle demand than growing enthusiasm around autonomous driving.
Analysts maintain constructive outlook
Morgan Stanley analyst Andrew Percoco said Tesla’s second-quarter deliveries exceeded sell-side consensus estimates by 18% and represented the company’s strongest vehicle growth since the third quarter of 2023.
The firm maintained its Equal Weight rating and a $415 price target.
Separately, Baird reiterated its Outperform rating and $522 price target after Tesla’s second-quarter results surpassed both the firm’s own forecasts and broader consensus expectations.
Baird also highlighted Tesla’s energy storage business, noting that deployments reached 13.5 gigawatt-hours during the quarter, up approximately 41% year over year.
While acknowledging that energy deployments can be uneven from quarter to quarter, the firm described the results as a positive development and said its constructive outlook on Tesla remains unchanged.
Tesla is scheduled to report its full second-quarter financial results after the market closes on July 22.
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