Tesla is back on pace.
A few months ago, Musk’s company was the butt of every joke on Wall Street and, in Wells Fargo’s parlance, a growth stock that wasn’t growing. Experts are beginning to question why anyone would include Tesla among the soaring Seven after it lags all other 499 stocks in the benchmark S&P index — even scandal-plagued Boeing Co.
no longer. Just as the second half of the year begins, Tesla’s market capitalization increased by a staggering $150 billion in just three days this week, and it has now fully recovered its year-to-date losses.
$Tesla current investors pic.twitter.com/yqa3efRxkc
— Teslaconomics (@Teslaconomics) July 3, 2024
Wedbush Securities technology analyst Dan Ives wrote on Wednesday: “The worst is over for Tesla as we believe the EV demand story is starting to return to the disruptive technology giant.” He raised his price target from 275 The dollar rose to $300 and reiterated his “outperform” rating.
Musk is now back to his arrogant old self, exchanging one dreamy growth target that defies human reason for another while warning that any short-sellers who stand in his way will be “eradicated” – including Bill Gates .
After consolidating around $180 for the better part of two months, the stock broke above its 200-day moving average on heavy trading volume and now looks like it could break a three-year downtrend, with bulls We see further room for growth.
Tesla $Tesla Already done! The 2.5-year downward trend has finally been broken🥳🍾🫂 pic.twitter.com/9kEQejJoNb
— Bar Chart (@Barchart) July 3, 2024
Late last month, when a popular pro-Tesla account reminded the fan community of what ARK Invest’s Cathie Wood said about charting technology in 2019, “The longer the base, the bigger the breakout,” Musk was quick to reply: ” Yes.”
Second-quarter deliveries beat expectations
The belief that the stock has bottomed out and is poised to continue rising in the coming months is reflected in some of the fundamentals currently emerging.
For example, second-quarter car deliveries released on Tuesday were in stark contrast to first-quarter figures, which were significantly below even the most pessimistic forecasts. After expectations continued to decline in recent weeks, Tesla finally managed to defy consensus with a relatively modest decline in vehicle sales.
Tesla’s second-quarter sales exceeded expectations.
About these estimates… https://t.co/N2EGBHVbXl via @View $Tesla pic.twitter.com/9TmW6xCpf6— Liam Denning (@liamdenning) July 2, 2024
Significant growth in its lucrative energy storage business also bolstered its argument that it is more than just an electric vehicle company, as its deployments more than doubled from the previous quarter’s record.
Until recently, many analysts and investors believed they needed to see an end to profit forecast downward revisions before sentiment could continue to improve.
Following Tuesday’s delivery surprise, bulls like Ives – who described first-quarter sales as a “nightmare” and a “complete disaster” – now believe the company has regained market confidence in its growth story Confidence.
He continued: “Tesla and Musk had a strong second quarter, Wall Street expected results to be significantly lower in the quarter, and global EV demand remained volatile, but Tesla delivered strong results at a critical time for investors .
With painfully high interest rates expected to ease later this year, the August 8 launch of the CyberCab robot taxi looming, and a new entry-level Tesla expected to debut six months later, The stock could rise further. It might even regain its place in the pantheon of the Seven.
It’s finally our turn $Tesla pic.twitter.com/XMhF3JbZ1V
— TheSonOfWalkley (@TheSonOfWalkley) July 3, 2024
