Tesla has a lot of self-confidence again.
A few months ago, Elon Musk’s company was the butt of all the jokes on Wall Street, a Growth stock without growth quote Wells FargoExperts wondered why the high-flying The glory seven after Tesla underperformed all 499 other stocks in the benchmark S&P index – even the scandal-plagued Boeing.
That’s over now. Just in time for the start of the second half of the year, Tesla has completely recouped its losses since the beginning of the year, having increased its market capitalization by a whopping $150 billion in just three days this week.
$TSLA Investors now pic.twitter.com/yqa3efRxkc
— Teslaconomics (@Teslaconomics) July 3, 2024
“The worst is behind us for Tesla as we believe electric vehicle demand is returning to the disruptive technology heavyweight,” Dan Ives, technology analyst at Wedbush Securities, wrote on Wednesday. He raised his price target to $300 from $275 and reiterated his “outperform” rating.
Musk is now back to his old self, Exchange one fantastic growth target that contradicts human reason another and warns any short seller who gets in his way of “extinguished“– Bill Gates included.
After consolidating around the $180 mark for nearly two months, bulls see further room for gains after the stock broke above the 200-day average under high trading volume and now looks like it could end the three-year downtrend.
Tesla $TSLA did it! 2.5 years of downward trend finally broken 🥳🍾🫂 pic.twitter.com/9kEQejJoNb
— Bar Chart (@Barchart) July 3, 2024
When a popular pro-Tesla account reminded the fanbase late last month of ARK Invest’s Cathie Wood’s 2019 words regarding charting that “the longer the base, the bigger the breakout,” Musk quickly responded replied: “TRUE.”
Second quarter deliveries exceeded subdued expectations
This belief that the stock has bottomed out and will continue its rally in the coming months is reflected in some of the fundamentals now visible.
For example, Tuesday’s announcement of second-quarter vehicle deliveries stood in stark contrast to the first-quarter figures, which missed even the most pessimistic forecasts by a wide margin. After expectations had been steadily declining over the past few weeks, Tesla finally managed to put a stop to it by beating consensus with a comparatively small decline in car sales.
Tesla’s second-quarter revenue beat estimates.
These estimates … https://t.co/N2EGBHVbXl above @Opinion $TSLA pic.twitter.com/9TmW6xCpf6— Liam Denning (@liamdenning) July 2, 2024
Massive growth in the lucrative energy storage business The fact that delivery numbers more than doubled from the previous quarterly record also reinforced the argument that this is not just an electric vehicle company.
Until recently, many analysts and investors had argued that the downward revisions in earnings expectations would have to end before sentiment could improve sustainably.
After Tuesday’s delivery surprise, bulls like Ives – who called first-quarter sales both a “nightmare” and an “absolute disaster” – now believe the company has brought the market back on track. Confidence in your own growth story.
“This was a great comeback from Tesla and Musk in the second quarter. Wall Street had expected a clear miss for this quarter as global demand for electric vehicles is still volatile. Nevertheless, Tesla delivered strong numbers at a crucial time for investors,” he continued.
With painfully high interest rates With prices expected to fall over the rest of the year, the launch of the CyberCab robot taxi on August 8th imminent, and a new entry-level Tesla model set to hit the market in about six months, the stock is poised for further gains. Perhaps it will even regain its place in the pantheon of the Magnificent Seven.
FINALLY IT’S OUR TURN $TSLA pic.twitter.com/XMhF3JbZ1V
— TheSonOfWalkley (@TheSonOfWalkley) July 3, 2024