Tesla (TSLA) is on a winning streak, with its stock rising as much as 1.1% in early trading on Friday, extending its longest winning streak in over a year. This surge comes after a 30% rally over the past seven sessions and a nearly 40% rise in the last month, bringing the stock close to breaking even for the year after a 40% drop year-to-date as of mid-April. In comparison, the S&P 500 has only seen a more modest 3.5% increase over the last month.
The recent rally in Tesla stock follows the company’s positive quarterly deliveries report, where Tesla beat expectations. Additionally, investors are excited about Tesla’s energy storage business, which has been growing rapidly and is seen as a key driver of future revenue.
A recent catalyst for Tesla stock was the inclusion of locally built Tesla cars on the purchase list for China’s Jiangsu province government workers. This move signals further acceptance and adoption of Tesla’s vehicles in the Chinese market, where the company faces stiff competition from local electric vehicle manufacturers.
Despite the positive momentum, Tesla CEO Elon Musk acknowledged at the shareholder meeting that near-term demand and sales may face challenges as the industry undergoes a transition period. Analysts like Dan Levy from Barclays remain cautiously optimistic, noting that the EV industry is still navigating through uncertain times.
Looking ahead, Tesla will report its quarterly results on July 23, with analysts eagerly awaiting the company’s much-anticipated robotaxi unveiling on August 8. Wedbush managing director Dan Ives sees Tesla as undervalued in terms of AI potential and has raised his price target on the stock.
Overall, Tesla’s stock has rebounded significantly, erasing all of its year-to-date losses. The company’s future growth prospects, including advancements in self-driving technology, continue to drive investor interest.
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