July 13, 2024

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Tesla shares are up again, extending a massive 40% rally over the past month.

Tesla shares are up again, extending a massive 40% rally over the past month.

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.

HANGZHOU, China - Aug. 14, 2023 - Customers purchase electric vehicles at a Tesla store in Hangzhou, east China's Zhejiang Province, Aug. 14, 2023. On the same day, Tesla announced it had cut the price of its two Model Y luxury models in the Chinese market, reducing the price of each car by $1,900 (about 14,000 yuan), and also announced a limited insurance subsidy of 8,000 yuan for existing Model 3 orders. (Photo by CFOTO/Future Publishing via Getty Images)

Customers purchase electric cars at a Tesla store in Hangzhou, eastern China’s Zhejiang province, August 14, 2023. (CFOTO/Future Publishing via Getty Images) (Future publication via Getty Images)

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.

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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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