Bull Market Ahead Tesla Rises for 8 Consecutive Days What Are the Next Key Focus Areas

Coin World reports:
Tesla stock (TSLA) experienced a dip of 1.6% on Friday (July 5th), but closed higher with an approximate 2.1% increase, marking the longest consecutive 8-day gain in nearly a year.
During this period, the stock rose 38%, adding $220 billion to its market value. It has surged over 70% from its low at the end of April and is now nearing the breakeven point for 2024.
Since the beginning of May, Tesla’s stock price has been trading within a relatively narrow range and has finally broken through. The stock has surpassed the 200-day moving average—a long-term trend indicator closely monitored by traders.
Delivery Volume Exceeds Expectations
Earlier this week, Tesla’s second-quarter delivery volume exceeded analysts’ average expectations, driving up Tesla’s stock price.
While analysts are optimistic about these better-than-expected delivery numbers, it marks the first time in over a decade that the automaker has seen a sequential quarterly decline in deliveries. The automaker announced on Tuesday that it delivered 443,956 vehicles in the second quarter, surpassing Wall Street analysts’ average estimate of 439,302, but down from previous quarters.
Daniel Ives, an analyst at Wedbush Securities, wrote in a report on Friday: “The worst is over for Tesla. Importantly, China appears to have had a ‘slight rebound’ in the June quarter.”
Energy Storage Business
Beyond these production and delivery results, Tesla bulls have also highlighted the fastest-growing part of the company—its energy storage business.
Adam Jonas of Morgan Stanley wrote in a recent report: “Tesla kicked off the Independence Day celebrations early with its second-quarter deliveries exceeding expectations, inventory down by 33,000 units, and storage volume surpassing expectations, reminding investors that it is more than just a car company.”
China Procurement List
Another positive catalyst was the procurement list published by China’s provincial governments on Thursday, which included locally produced Tesla cars.
According to Reuters, the catalog from China’s eastern Jiangsu province includes Tesla’s Model Y, meaning government workers can purchase the vehicle for official use.
Facing Challenges
Tesla faces fierce competition from Chinese counterparts overseas, while demand for electric vehicles in the United States is also weakening. To cut costs, the company initiated a layoff plan earlier this year, exceeding 10%, which some analysts see as a signal of tough times ahead.
The company also significantly reduced prices last year to boost sales.
At Tesla’s shareholder meeting last month, CEO Elon Musk confirmed that the industry is going through a transition period, and demand and sales will still face certain difficulties in the short term.
Dan Levy, a senior equity research analyst at Barclays, said earlier this week: “There is still a risk of further price reductions in the future, and there are more fundamental issues, as we face a winter of electric vehicle demand.” Levy’s target price for the stock is $180.
Focus on the Follow-Up
Tesla will announce its quarterly results after the market closes on July 23rd. Analysts are also looking forward to the company’s highly anticipated autonomous taxi launch on August 8th.
Dan Ives, Managing Director at Wedbush, wrote in a report this week: “The key to Tesla’s stock price is Wall Street’s realization that Tesla is the most undervalued artificial intelligence company on the market.” He raised his target price for the stock from $275 to $300 and predicts the stock will reach $400 by 2025.
Ives added that the company’s robotaxi event on August 8th “will pave the way for a fully autonomous and independent future.”