Elon Musk attends “Exploring New Frontiers of Innovation: A Conversation with Mark Read with Elon Musk” during the 2024 Cannes Lions International Festival of Creativity – Day 3 in Cannes, France, on June 19, 2024.
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Tesla’s The stock rose enough on Friday to erase its year-to-date loss and bring its weekly gain to 27%.
Shares of the electric vehicle maker closed Friday at $251.55. They ended last year at $248.48 and continued to fall as low as $138.80 in April.
Latest rally fueled by better-than-expected results Delivery report for the second quarter on Tuesday. While deliveries were still down 4.8% from a year earlier, the decline was less steep than the first-quarter decline and gave investors reason to be optimistic heading into the second half of the year.
Tesla shares hit a 52-week low in April after a series of troubling developments. Sales in the core car business down in the first quartercompany shrink through mass layoffs and has report that Tesla has canceled plans to produce a low-cost family car at its Texas factory.
Tesla is scheduled to report its second-quarter financial results after the close on July 23. Auto industry gross margins will likely be in focus.
Since last year, Tesla has offered a variety of discounts and incentives to attract customers to its long-running electric vehicle lineup, which includes the popular Model 3 sedan, the Model Y crossover utility vehicle, the more expensive Model S sedan, and the Model X SUV.
Tesla will start selling its angular Cybertruck in late 2023. A Tesla Cybertruck account on social media site X posted Thursday that the truck became the best-selling all-electric pickup truck in the United States in the second quarter.
Ford reported Sales of the all-electric F-150 Lightning totaled 7,902 units in the second quarter and 15,645 through June of this year.
Tesla did not respond to CNBC’s request for further information.
In addition to the upcoming earnings report, Cantor Fitzgerald analysts wrote in a note on Tuesday that they expect a marketing event — Tesla’s Robotaxi Day — early next month to be a catalyst for the stock.
“TSLA previously revealed plans for Robotaxi (or Cybercab), which the company plans to launch on August 8,” they wrote. “While we do not expect this segment to launch before 2027, we expect it to be a meaningful business segment for the company in the long term.”
Still, Cantor Fitzgerald expects Tesla to deliver fewer cars this year than last. The firm has a $230 price target on Tesla and a buy recommendation on the stock.
While Tesla has recovered, the company is still lagging the broader market this year. The Nasdaq is up 22% in 2024 and the S&P 500 is up 17%. Tesla is up 1.2% now.
ONE recent Axios Harris poll found that the company’s brand was in decline, at least in part due to Musk’s “antics” and “political criticism.” A New York Times survey out this week also said Musk’s “divisive statements” and “political activity” were driving away some “left-leaning consumers.”
Tesla is still years behind in delivering software that could turn its existing cars into self-driving vehicles, Musk said. Published on October 19, 2016that all Tesla cars produced at that time had the hardware necessary to make them self-driving. But in End of JuneHe said another hardware and sensor setup is being deployed to enable that capability.
