Tesla (TSLA) shares rose 2% on Friday, as the stock extended its winning streak to an eighth straight session and erased its losses since the beginning of the year.
After rising 37% over the past eight sessions — and a 43% gain in the past month — the stock is now in positive territory for 2024, completing a remarkably rapid turnaround. The stock had fallen 40% year-to-date through mid-April.
Over the past month, the S&P 500 has risen a modest 4%.
Tesla’s extended rally comes as the automaker beat its quarterly deliveries earlier this week.
Apart from these production and delivery results, Tesla bulls They also highlighted the company’s fastest growing segment – energy storage.
“Tesla got its Independence Day celebrations off to a good start with positive Q2 deliveries, a 33K unit drop in inventory, and strong storage growth to remind investors that it’s not just a car company,” Adam Jonas of Morgan Stanley wrote in a recent note.
Another positive boost came after the Chinese regional government released a purchase list, which included locally made Tesla cars, on Thursday.
The catalogue for eastern China’s Jiangsu province includes a Tesla Model Y, meaning government employees are allowed to buy the car as a service vehicle, Reuters reported.
Tesla has faced fierce competition abroad from Chinese rivals and slumping demand for electric vehicles in the United States. In a bid to cut costs, the company embarked on a plan to cut more than 10% of its global workforce earlier this year, in what some analysts saw as a sign of tough times ahead.
The company also cut prices last year to stimulate sales.
During Tesla’s shareholder meeting last month, CEO Elon Musk stressed that near-term demand and sales will struggle as the industry goes through a transition.
“There is still a risk of further price cuts in the future, and there is [are] “There are still other questions around the fundamentals, and we’re still in a bit of an EV winter because of demand,” Dan Levy, senior equity research analyst at Barclays, told Yahoo Finance earlier this week. “So the outcome is good. But I think the underlying macro backdrop is still intact.” Levy gives the stock an equal-weight rating and a $180 price target.
Tesla will report its quarterly results on July 23 after the market closes. Analysts are also looking ahead to August 8 when the company will unveil its long-awaited robotaxi.
“The key to Tesla stock is the Street’s realization that Tesla is the most underrated AI play on the market,” Wedbush managing director Dan Ives wrote in a note this week, raising his price target on the stock to $300 from $275 with a new bull case of $400 for 2025.
The company’s taxi robot event on August 8 will “lay the yellow brick road,” Ives added. [full self-driving] “And an independent future.”
Ines Ferry is a senior business reporter at Yahoo Finance. You can follow her on X on @ines_ferre.
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