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Tesla shares surge on monster rally, 8-day winning streak looks set to continue
Tesla shares (TSLA) erased Monday morning losses as the electric vehicle giant sought to extend an eight-day deadline race in which shares rose by about 37%.
The stocks’ winning streak has erased the year’s losses so far in a remarkably swift turnaround. Shares have gained more than 75% since 52-week lows hit in April.
The extended rally comes as the automaker hit quarterly deliveries last week. In addition to the production and delivery results, Tesla Bulls also highlighted the company’s fastest-growing segment — its energy storage business.
Smaller electric vehicle makers also reported better-than-expected deliveries last quarter.
On Monday, Lucid (LCID) shares jumped nearly 4% after the luxury electric vehicle startup outperformed production and delivery expectations for the second quarter. Chinese competitors Li Auto (I), Nio (NIO) and XPeng (XPEV) also recently reported better than expected quarterly deliveries.
Tesla has been slumping in the first half of 2024 amid stiff competition overseas 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 workforce earlier this year, in what some analysts saw as a signal of difficult times ahead.
Tesla also cut prices last year to boost sales and better compete with its Chinese rivals.
“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 last 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, implying a nearly 30% downside from current levels.
The carmaker will report its quarterly results on July 23, after the market closes. Analysts are also looking ahead to August 8, when the company is expected to 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.
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.”
A Tesla Cybertruck (AP/Richard Vogel) (ASSOCIATED PRESS)
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.