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Tesla shares surge again, extending monster 40% rally over the past month
Tesla shares (TSLA) rose 2% on Friday as shares extended their winning streak to an eighth straight session and erased their year-to-date losses.
After a 37% increase in the last eight sessions — and a 43% surge in the past month — the stock is now in positive territory for 2024, completing a remarkably quick turnaround. The stock was down as much as 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 hit quarterly deliveries earlier this week.
In addition to these production and delivery results, Tesla Bulls also highlighted the company’s fastest-growing segment — its energy storage business.
“Tesla started its Independence Day celebration early with a positive Q2 delivery result, a 33K inventory drop and a big warehousing result to remind investors that it’s not just a car company,” Morgan Stanley’s Adam Jonas wrote in a recent note.
Another positive catalyst emerged after the publication from China’s provincial government’s shopping list, which included locally made Tesla cars on Thursday.
The catalog for eastern China’s Jiangsu province included Tesla’s Model Y vehicle, meaning government officials are allowed to buy the vehicle as a company car, according to Reuters.
Customers buy electric cars at a Tesla store in Hangzhou, east China’s Zhejiang province, August 14, 2023. (CFOTO/Future Publishing via Getty Images) (Future Publishing via Getty Images)
Tesla has faced stiff competition overseas from its Chinese counterparts and some waning demand for EVs in the U.S. In an effort to reduce costs, the company embarked on a plan to cut more than 10% of its global staff earlier this year, in what some analysts saw as a signal of difficult times ahead.
The company also cut prices last year to stimulate sales.
During Tesla’s shareholder meeting last month, CEO Elon Musk confirmed that demand and sales in the short term would still face some headwinds as the industry goes through a period of transition.
“There is still a risk of further price cuts in the future, and there is [are] “There are still more questions about fundamentals, we’re still facing an on-demand EV winter,” Barclays senior equity research analyst Dan Levy told Yahoo Finance earlier this week. “So, good outcome. But I think the fundamental macro picture is still the same.” Levy has an Equal Weight rating on the stock 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 for Tesla stock is for Wall Street to recognize that Tesla is the most undervalued AI company on the market,” Wedbush managing director Dan Ives wrote in a note this week, as he raised his price target on the stock to $300 from $275, with a new bullish 2025 scenario of $400.
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Ives added that the company’s robotaxi event on August 8 will “lay the yellow brick road for [full self-driving] and an autonomous future.”
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.
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