Tesla stock up for 10th day: What's behind the surge?
Tesla's stock recorded its tenth consecutive day of gains on Tuesday, closing up by approximately 4% at around $262 apiece. This upward trend has enabled the company to erase all its year-to-date losses, with shares now up about 5% since the start of the year. Furthermore, Tesla's stock has surged about 75% since hitting a 52-week low in April this year.
Analysts attribute Tesla's success to Q2 production numbers
Analysts credit Tesla's upward trajectory to its second quarter vehicle production and delivery numbers, which exceeded Wall Street expectations. The company's artificial intelligence businesses have also contributed to this momentum. "All of a sudden, the market is valuing the growth potential for Tesla," said Seth Goldstein, an equity strategist at Morningstar.
Tesla's future growth hinges on affordable EVs, Robotaxi launch
Tesla is set to announce its next quarterly results on July 23. The company has hinted at developing more affordable electric vehicles, a move investors see as a key growth catalyst. However, Goldstein stressed that Tesla needs to provide a "solid, concrete timeline" for these cars' rollout, potentially as early as 2025. Additionally, the unveiling of Tesla's much-anticipated robotaxi on August 8 presents another growth opportunity.
Tesla overcomes early year challenges, outperforms short sellers
Despite promising prospects, Tesla's stock saw a significant drop in the first half of the year following a fourth quarter financial report that missed both top and bottom lines. A subsequent 9% year-over-year drop in first quarter vehicle deliveries further lowered shares. In response, Tesla cut over 10% of its staff after the delivery miss. Despite these challenges and stiff competition from Chinese EV makers, short sellers betting against Tesla have been hit hard by its recent rally.
