Tesla Stocks (TSLA) rose as much as 1.1% in early trading Friday, putting shares on track to extend their longest winning streak in more than a year and continue to be a market leader.
After a 30% increase in recent years seven sessions — and up nearly 40% over the past month — the stock is nearing breakeven for 2024 after falling as much as 40% year-to-date as of mid-April.
Over the past month, the S&P 500 has posted a more modest gain of 3.5%.
Tesla’s extended rally comes as the automaker beat quarterly deliveries earlier this week.
In addition to these production and delivery results, Tesla Bulls also highlighted the company’s fastest-growing segment: its energy storage business.
“Tesla started its Independence Day celebration early with a positive second-quarter delivery rate, 33,000 lower inventory, and strong stockpiling to remind investors that it is not just a car company,” Morgan Stanley’s Adam Jonas wrote in a recent note.
Another positive catalyst came after the publication from the Chinese provincial government’s purchase list, which included locally built Tesla cars on Thursday.
The catalog for eastern China’s Jiangsu province includes Tesla’s Model Y vehicle, meaning government employees are allowed to purchase the vehicle as a company car, according to Reuters.
Tesla has faced stiff competition overseas from its Chinese peers and a decline in demand for electric vehicles in the United States. In an effort to cut costs, the company embarked on a plan to cut more than 10% of its global workforce earlier this year, in what some analysts saw as a signal hard times ahead.
The company also cut prices last year to boost sales.
At Tesla’s shareholder meeting last month, CEO Elon Musk confirmed that near-term demand and sales will still be somewhat challenging as the industry goes through a transition period.
“There’s still a risk of further price declines ahead, and there’s still more fundamental questions, we’re still in a bit of an EV demand winter,” Dan Levy, senior equity research analyst at Barclays, told Yahoo Finance earlier this week. “So, good result. But I think the fundamental macro backdrop is still the same.” Levy gave the stock an equal weight rating and a $180 price target.
Tesla will report its quarterly results on July 23 after the market closes. Analysts are also looking forward to August 8, when the company will unveil its highly anticipated robotaxi.
“The key to Tesla’s stock is for the stock market to recognize that Tesla is the most undervalued AI stock on the market,” Wedbush CEO Dan Ives wrote in a note this week, as he raised his price target on the stock to $300 from $275 with a new upside scenario of $400 by 2025.
Ives added that the company’s robotaxi event, which will take place on August 8, “will lay the foundation for a fully autonomous and self-driving future.”
The stock has pared all of its year-to-date losses, jumping more than 70% from its late April lows.
Ines Ferre is a senior economics journalist for Yahoo Finance. Follow her on X at @ines_ferre.
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