CoinDesk report:
Tesla’s stock price rose on Friday to a level sufficient to offset losses for the year and push this week’s gains to 27%. The electric car manufacturer’s stock closed at $251.55 on Friday, up from last year’s closing price of $248.48 and a low of $138.80 in April. The second-quarter delivery report released on Tuesday exceeded expectations, sparking the latest rebound. Despite a 4.8% year-on-year decrease in deliveries, the decline was not as significant as in the first quarter, giving investors reason to be optimistic for the second half of the year. Following a series of unsettling developments in April, Tesla’s stock hit a 52-week low. Sales dropped in the first quarter in the core automotive business, leading the company to conduct significant layoffs, with reports indicating the cancellation of plans to produce low-cost home-use vehicles quickly at its Texas factory. Tesla is set to announce second-quarter financial performance after the bell on July 23. The focus might be on the automotive gross margin. Since last year, Tesla has been offering extensive discounts and incentives to attract customers to purchase its aging lineup of electric vehicles, including its popular entry-level Model 3 sedan, the Model Y crossover SUV, and the pricier flagship Model S sedan and Model X SUV.
Watch the video immediately 3:50 03:50 Cybertruck owner shares his experience of throttle pedal getting stuck Last Call
In late 2023, Tesla began selling its angular Cybertruck. The Tesla Cybertruck account on social network X announced on Thursday that the truck became the best-selling all-electric pickup truck in the United States in the second quarter. Ford reported that its all-electric F-150 Lightning sold 7,902 units in the second quarter and 15,645 units by June of this year. Tesla did not respond to requests for more information. Besides the upcoming earnings report, Cantor Fitzgerald analysts wrote in a report on Tuesday that they anticipate a marketing event next month—Tesla Robot Day—will serve as a catalyst for the stock. They wrote, “TSLA has previously disclosed plans for Robotaxi (or Cybercab), which the company plans to launch on August 8th.” “While we do not expect this subsegment market to launch before 2027, we do see it as a meaningful business subsegment for the company in the long term.” However, Cantor Fitzgerald expects Tesla’s car delivery volume to be lower this year. The company has set a target price of $230 for Tesla and recommends buying the stock. Despite Tesla’s rebound, it is still behind the market this year. The Nasdaq index rose by 22% in 2024, and the S&P 500 index increased by 17%. Tesla is currently up 1.2%. A recent Axios Harris poll found that the company is experiencing brand deterioration, partly due to Musk’s “antics” and “political rants.” An investigation in The New York Times this week also mentioned Musk’s “polarizing remarks” and “political activities” driving away some “left-leaning consumers.” Tesla still faces years of delay in delivering software that would transform its existing cars to self-driving vehicles. Musk announced on October 19, 2016, that all Tesla vehicles in production at the time had the necessary hardware for full self-driving. However, in late June, he indicated that a different hardware and sensor setup was achieving this functionality. Analysis: Tesla’s deliveries are being “overanalyzed”
Watch the video now 5:44 05:44 RBC Capital’s Tom Narayan Squawk on the Street says investors are “overanalyzing” Tesla’s deliveries
