A Tesla Cybertruck on display
Tesla's stock (TSLA) continued its upward climb on Monday, marking its ninth straight day of gains with a modest increase of 0.5%.
This streak has been remarkable, swiftly erasing losses seen earlier this year and propelling shares up by more than 75% from their lowest point in April.
The surge in Tesla's stock follows strong quarterly delivery numbers announced last week, which exceeded expectations. Investors have been particularly pleased with the performance of Tesla's energy storage division, highlighting it as a key growth area.
In addition to Tesla's success, smaller electric vehicle manufacturers have also reported better-than-expected delivery figures for the last quarter.
On Monday, Lucid (LCID) saw its shares jump nearly 7% after surpassing production and delivery forecasts for the second quarter. Similarly, Chinese rivals Li Auto (LI), Nio (NIO), and XPeng (XPEV) have recently posted impressive quarterly delivery results.
Tesla faced challenges earlier in 2024 amidst fierce competition abroad and weakening demand for electric vehicles in the US. To counter these pressures, the company initiated a cost-cutting plan earlier this year, including a significant reduction in its global workforce, which analysts interpreted as a signal of difficult times ahead.
To stimulate sales and better compete with Chinese counterparts, Tesla had slashed prices last year. However, Barclays senior equity research analyst Dan Levy cautioned that the company still faces risks of further price reductions and ongoing questions about its fundamentals, amid what he described as a challenging environment for EV demand.
Levy maintains an Equal Weight rating on Tesla's stock with a price target of $180, suggesting a potential drop of nearly 30% from current levels.
Looking forward, Tesla is scheduled to report its quarterly financial results on July 23 after the market closes. Analysts are also eagerly anticipating August 8, when the company plans to unveil its highly anticipated robotaxi.
Wedbush managing director Dan Ives emphasized that Tesla's potential as a leading player in artificial intelligence remains undervalued by the market. He recently raised his price target on Tesla's stock to $300 from $275, with an optimistic bull case projection of $400 for 2025.
Ives believes that Tesla's upcoming robotaxi event on August 8 will pave the way towards full self-driving capabilities and a future dominated by autonomous vehicles.
