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.
Click here for the latest stock market news and in-depth analysis, including events that move stocks.
Read the latest financial and business news from Yahoo Finance.
“Web maven. Infuriatingly humble beer geek. Bacon fanatic. Typical creator. Music expert.”
More Stories
Rivian cuts annual production forecasts due to parts shortages, low stock
The lack of short-term coverage on China Tech means the rally is a new buy
The United States faces economic turmoil as recession fears ease