Is Bull Market Approaching Tesla Rises for 8 Consecutive Days What are the Next Key Points to Focus on

CoinDesk Report:
Tesla’s stock (TSLA) saw volatile trading on Friday, July 5, initially dropping by 1.6% before closing with a gain of approximately 2.1%, marking its longest consecutive eight-day increase in nearly a year.


During this period, the stock surged by 38%, adding $220 billion to its market capitalization. Rising over 70% from its late-April lows, it is now nearing breakeven for 2024.


Since early May, Tesla’s stock had been trading within a narrow range which it has now decisively broken out of. It has also surpassed its 200-day moving average, a key long-term trend indicator closely watched by traders.


Exceeding Delivery Expectations
Earlier this week, Tesla reported second-quarter deliveries that surpassed analysts’ average expectations, driving the stock price higher.


While analysts viewed these better-than-expected delivery numbers positively, they mark the automaker’s first consecutive quarterly decline in deliveries in over a decade. Tesla reported delivering 443,956 vehicles in the second quarter, surpassing the Wall Street analysts’ average estimate of 439,302 vehicles, but showing a decrease compared to previous quarters.
Daniel Ives, an analyst at Wedbush Securities, noted in a report on Friday, “The worst is behind Tesla. Crucially, China appears to have seen a ‘modest rebound’ in the June quarter.”
Energy Storage Business
In addition to these production and delivery results, Tesla bulls emphasized the company’s fastest-growing segment—its energy storage business.
Adam Jonas of Morgan Stanley wrote in a recent report, “Tesla kicked off the Fourth of July celebrations early, with Q2 deliveries beating expectations, inventory down by 33,000 units, and storage exceeding expectations, reminding investors it’s more than just an automaker.”
China Procurement List
Another positive catalyst came on Thursday with a procurement list from provincial governments in China, including locally produced Tesla vehicles.
According to Reuters, the catalog from Jiangsu province in eastern China includes Tesla’s Model Y, allowing government officials to purchase the vehicle for official use.
Challenges Ahead
Tesla faces intense competition abroad from Chinese peers and weakening demand for electric vehicles in the United States. Earlier this year, the company initiated a layoff plan exceeding 10%, signaling tough times ahead, according to some analysts.
The company also significantly slashed prices last year to stimulate sales.
During last month’s shareholder meeting, CEO Elon Musk confirmed that short-term demand and sales would continue to face challenges due to the industry’s transition phase.
Dan Levy, Senior Stock Research Analyst at Barclays, stated earlier this week, “There’s still risk of further price cuts in the future, more fundamental issues persist, and we’re in an EV demand winter.” Levy set a target price of $180 for the stock.
Upcoming Focus
Tesla is set to announce quarterly earnings after market close on July 23. Analysts are also anticipating the company’s highly anticipated autonomous driving taxi launch on August 8.
Dan Ives, Managing Director at Wedbush, wrote in a report this week, “The key to Tesla’s stock is Wall Street recognizing Tesla as the most underestimated AI (artificial intelligence) company in the market.” He raised his target price for the stock from $275 to $300 and predicts the stock could reach $400 by 2025.
Ives added that the August 8 event “will pave the way for the (fully autonomous driving) and autonomous future.”