Elon Musk attended the “Exploring New Areas of Innovation: A Dialogue between Mark Reed and Elon Musk” on the third day of the 2024 Cannes International Creativity Festival in Cannes, France on June 19, 2024.
Mark Piasecki | Getty Images
Tesla’s Shares rose on Friday, enough to erase losses for the year, and are up 27% for the week.
The electric car maker’s shares closed Friday at $251.55. It closed at $248.48 last year and fell to $138.80 in April.
The latest rally was sparked by a better-than-expected second-quarter deliveries report on Tuesday. While deliveries were still down 4.8% from the same period last year, the decline was not as severe as in the first quarter, giving investors reason to be optimistic about the second half of the year.
In April, Tesla shares fell to a 52-week low after a series of troubling developments. Sales at its core auto business fell in the first quarter as the company downsized through mass layoffs and reports surfaced that Tesla had scrapped plans to soon build low-cost family cars at its Texas factory.
Tesla will release its second-quarter financial results on July 23 after the market closes.
Tesla has been offering a wide range of discounts and incentives since last year to lure customers into its aging lineup of electric vehicles, including its popular entry-level Model 3 sedan, Model Y crossover utility vehicle and more expensive The flagship Model S sedan and Model X SUV.
In late 2023, Tesla began selling its angular Cybertruck. The Tesla Cybertruck account on social media site
Ford announced that sales of its all-electric F-150 Lightning totaled 7,902 units in the second quarter and 15,645 units as of June this year.
Tesla did not respond to CNBC’s request for more information.
In addition to the upcoming earnings report, Cantor Fitzgerald analysts wrote in a note on Tuesday that they expect a marketing event early next month — Tesla’s RoboTaxis Day — to be a catalyst for the stock.
“TSLA has previously disclosed plans for Robotaxi (or Cybercab), which the company plans to launch on August 8,” they wrote. “While we do not expect the segment to launch before 2027, we do It is expected to be a meaningful business segment for the company in the long run.”
Still, Cantor Fitzgerald expects Tesla to deliver fewer cars this year than last year. The firm set a price target on Tesla of $230 and recommended buying the stock.
Although Tesla has rebounded, it still lags behind the broader market this year. The Nasdaq is up 22% in 2024, and the S&P 500 is up 17%. Tesla is currently up 1.2%.
A recent Axios Harris poll found that the company is experiencing brand deterioration, at least in part due to Musk’s “antics” and “political rants.” A New York Times investigation released this week also said Musk’s “polarizing rhetoric” and “political activity” were driving away some “left-leaning consumers.”
Tesla is also still years behind on delivering the software that can turn its existing vehicles into self-driving cars. On October 19, 2016, Musk announced that all Tesla cars produced at that time were equipped with the hardware required for autonomous driving. But in late June, he said another hardware and sensor setup was being developed to enable the functionality.
watch: Tesla’s deliveries are ‘overanalyzed’
