Tesla Stock Rises 27 This Week Erasing Yearly Loss

Coin World reported:
Tesla’s stock price rose on Friday to make up for this year’s losses and bring the weekly gain to 27%. The electric car maker’s stock closed at $251.55 on Friday. Last year’s closing price was $248.48, dropping to $138.80 in April. The second quarter delivery report released on Tuesday exceeded expectations, triggering the latest rebound. Despite a 4.8% year-on-year decrease in deliveries, the decline was not as significant as in the first quarter, giving investors reason to be optimistic for the second half of the year. In April, after a series of unsettling developments, Tesla’s stock price fell to a 52-week low. In the first quarter, sales of the core automotive business declined, and the company conducted layoffs on a large scale. There were reports that Tesla had canceled plans to produce low-cost household cars quickly at its factory in Texas. Tesla is scheduled to announce its second-quarter financial performance after the bell on July 23. The automotive gross margin may be a focus. Since last year, Tesla has been offering wide discounts and incentives to attract customers to purchase its aging electric vehicle lineup, including its popular entry-level Model 3 sedan, Model Y crossover SUV, and more expensive flagship Model S sedan and Model X SUV.
Watch the video immediately 3:50 03:50 Cybertruck owner shares his experience of a stuck accelerator pedal Last Call
At the end of 2023, Tesla began selling its angular Cybertruck. On Thursday, the Tesla Cybertruck account on the social network X announced that the truck had become the best-selling all-electric pickup in the United States in the second quarter. Ford reported that its all-electric model F-150 Lightning sold 7,902 units in the second quarter, with sales reaching 15,645 units as of June this year. Tesla did not respond to requests for more information. In addition to the upcoming earnings report, Cantor Fitzgerald analysts wrote in a report on Tuesday that they expect a marketing event next month – Tesla Robot Day – to be a catalyst for the stock. They wrote, “TSLA has previously disclosed plans for Robotaxi (or Cybercab) and the company plans to launch on August 8.” “While we do not expect this sub-segment to be launched before 2027, in the long run, we do expect it to be a meaningful business sub-segment for the company.” However, Cantor Fitzgerald expects Tesla’s car delivery volume to be lower this year than last. The company has set Tesla’s target price at $230 and recommends buying the stock. Despite Tesla’s rebound, it still lags behind the market this year. The Nasdaq index rose 22% in 2024, and the S&P 500 index rose 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 “ridiculous actions” and “political rants.” A survey in The New York Times this week also stated that Musk’s “polarizing remarks” and “political activities” are driving away some “left-leaning consumers.” Tesla still has years of delays in software to transition its existing cars to self-driving cars. Musk announced on October 19, 2016, that all Tesla cars then in production had the necessary hardware for autonomous driving. But in late June, he said another hardware and sensor setup was working on this feature. Observation: Tesla’s delivery is “overanalyzed” Watch the video now 5:44 05:44 RBC Capital’s Tom Narayan Squawk Street said investors were “overanalyzing” Tesla’s delivery.