Subscribe to our newsletter and stay informed

Check out our list of top companies

Check out our carefully compiled lists of the most relevant and impactful companies within their fields.

Check out our list of top unicorns

Read and learn about the biggest companies that various countries have produced, how they made it, and what the future looks like for them.

Tesla Shares Soar, Erasing Annual Loss

Tesla's stock skyrocketed last Friday, wiping out its yearly loss and closing the week with an impressive 27% gain
July 7, 2024

Tesla's stock surged last Friday, erasing its annual loss and ending the week with a remarkable 27% gain. Shares closed at $251.55, recovering from a low of $138.80 in April.

This rally was fueled by a stronger-than-expected second-quarter deliveries report. Although deliveries dropped 4.8% from the previous year, the decline was less severe than the first quarter, sparking investor optimism for the rest of the year.

April marked a low point for Tesla, with its stock hitting a 52-week low amid declining automotive sales, layoffs, and scrapped plans for a low-cost family car. However, the company is set to release its second-quarter financial results on July 23, with a focus on automotive gross margins.

To attract customers to its aging EV lineup, Tesla has offered extensive discounts and incentives. This strategy has been applied to popular models like the Model 3 sedan, Model Y crossover, and the flagship Model S and Model X. Additionally, the Cybertruck, launched in late 2023, has become the best-selling fully electric pickup in the U.S. for the second quarter.

Ford, in comparison, reported sales of 7,902 units for its electric F-150 Lightning in the second quarter, totaling 15,645 units through June.

Tesla's future looks promising with upcoming events like Robotaxi Day on August 8, where the company plans to unveil its Robotaxi or Cybercab. Cantor Fitzgerald analysts see this as a potential catalyst for the stock, predicting it will become a significant business segment by 2027. Despite this optimism, Cantor Fitzgerald expects Tesla to deliver fewer cars this year compared to last, maintaining a price target of $230 and recommending buying the stock.

However, Tesla's performance is trailing behind the broader market. While the Nasdaq is up 22% and the S&P 500 has gained 17% in 2024, Tesla's stock has only increased by 1.2%.

Brand perception challenges persist for Tesla, partly due to CEO Elon Musk's polarizing statements and political activity. A recent Axios Harris poll and a New York Times survey highlight the impact of Musk's antics on the brand, particularly among left-leaning consumers.

Tesla is also delayed in delivering fully self-driving software for its vehicles. Although Musk announced in 2016 that all Tesla cars had the necessary hardware for self-driving capabilities, a new hardware and sensor setup is now in development.

Tesla's journey is a blend of remarkable recovery and ongoing challenges, with its stock performance, product lineup, and brand perception all in a state of dynamic evolution. The company's upcoming earnings report and future product launches will be critical in shaping its path forward.

More about:  |

Last related articles

chevron-down linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram