Morgan Stanley analyst Adam Jonas reiterated an Equalweight rating and $230.00 price target on Tesla (NASDAQ: TSLA) noting 4 takeaways from the better than expected deliveries announcement:

1) 2Q deliveries of 95,200 units, well ahead of both Consensus/MSe and at the guidance midpoint of 90-100k units. Putting this in perspective, Tesla’s 2Q19 deliveries were 2x the number of all non-Tesla BEVs sold in the US market for all of 2018.

2) Working capital shaping up to be a material positive for the quarter possibly leading to positive free cash flow for 2Q.

3) Orders exceeded deliveries leading to strong backlog.

4) The bears are unlikely to capitulate. Tesla’s intra-quarter delivery data has been inconsistent and he suggests investors mentally prepare for a potential air pocket in 3Q delivery data.

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Shares of Tesla closed at $241.48 yesterday.