News
Why Tesla Stock Soared Ahead of Q2 Deliveries
Actions of Tesla Tesla Inc. (NASDAQ:TSLA) has been on a comeback trail recently, and that continued on the first trading day of July. Shares of the leading electric vehicle (EV) maker were 5.5% higher as of 11:10 a.m. ET Monday morning. The stock is now up about 18% over the past month.
Today’s jump comes just a day before Tesla reports its second-quarter EV delivery data. While estimates have been trending lower, delivery reports from Chinese EV makers today have investors more optimistic about what the American company will say.
The important Chinese electric vehicle market
The Chinese EV market has been crucial for Tesla, whose most productive factory is in Shanghai. Today, several Chinese EV manufacturers reported strong deliveries in June and the second quarter. That could bode well for what Tesla has to share tomorrow.
Nio, I read the car, XPengIt’s the biggest BYD all showed annual growth in battery electric vehicle (BEV) sales for the quarter. The period appeared to end on a strong note, as Nio delivered a monthly record of 21,209 vehicles in June. That was nearly double what it shipped in June 2023.
Many EV watchers have been closely watching BYD, whose BEV volume is more in line with Tesla’s. BYD sold more than 426,000 all-electric vehicles in the second quarter, up about 21% from a year earlier.
Tesla analysts have been slashing estimates for its second-quarter sales, with the most recent projections averaging around 420,000 EVs. That would be down from about 466,000 delivered in the year-ago period. It would also be the second quarterly period in which BYD has surpassed Tesla to be the world’s biggest seller of EVs.
With China’s EV market seemingly recovering, this could result in Tesla beating estimates. Even after this data is released, though, shareholders will want to continue paying attention to what happens next. Tesla says about profit margin when it releases its full second-quarter financial report. If sales in China are coming at reduced prices, the rise in its shares may be short-lived.
Should You Invest $1,000 in Tesla Right Now?
Before you buy Tesla stock, consider the following:
The Motley Fool Stock Advisor analyst team has just identified what they believe to be Top 10 Stocks for investors to buy now… and Tesla wasn’t one of them. The 10 stocks that made the cut could produce monstrous returns in the years ahead.
Consider when Nvidia I made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you would have $757,001!*
Stock Advisor provides investors with an easy-to-follow success plan, including guidance on how to build a portfolio, regular analyst updates, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of the S&P 500 since 2002*.
The story continues
*Stock Advisor returns as of June 24, 2024
Howard Smith has positions in BYD Company, Nio, Tesla, and XPeng. The Motley Fool has positions in and recommends BYD Company, Nio, and Tesla. The Motley Fool has a disclosure policy.
Why Tesla Stock Soared Ahead of Q2 Deliveries was originally published by The Motley Fool