Tesla shares (TSLA) rose for a ninth straight day on Monday, climbing just 0.5%.
The company’s stock has continued its winning streak, erasing its losses this year in surprisingly quick time, with shares up more than 75% since hitting a 52-week low in April.
The extended rally in the stock comes as the automaker posted a quarterly delivery beat last week. In addition to production and delivery results, Tesla bulls are also keeping an eye on its energy storage business, the company’s fastest-growing division.
Smaller and mid-sized electric vehicle makers also reported better-than-expected shipments last quarter.
Shares of luxury EV startup Lucid (LCID) rose about 7% on Monday after it reported better-than-expected second-quarter production and deliveries. Chinese rivals Li Auto (LI), Nio (NIO) and XPeng (XPEV) also recently reported better-than-expected quarterly deliveries.
Tesla’s performance has slumped in the first half of 2024 due to stiff competition overseas and declining demand for EVs in the U.S. The company embarked on a plan to cut more than 10% of its global workforce earlier this year as a cost-cutting measure, which some analysts see as a sign of tougher times to come.
Tesla slashed prices last year to boost sales and better compete with Chinese peers.
“The risk of further price cuts remains. [are] “While further questions remain about the fundamentals, we’re still facing a winter period of EV demand,” Dan Levy, senior equity research analyst at Barclays, told Yahoo Finance last week. “So it’s a good result, but I think the fundamental macro environment is still the same.”
Levy rates the stock equal weight and has a price target of $180, which would imply a nearly 30% downside from current levels.
The company is scheduled to report its quarterly results after the market closes on July 23. Analysts are also keeping an eye on Aug. 8, when the company is expected to unveil its long-awaited robotaxi.
“The key for Tesla stock is for the market to realize that it is the most undervalued AI company on the market,” Wedbush Managing Director Dan Ives wrote in a note this week, raising his price target on Tesla shares to $300 from $275 and laying out a new bullish scenario of $400 by 2025.
Ives said the company’s robotaxi event on August 8th is ” [full self-driving] And an autonomous future.”
Tesla Cybertruck (AP/Richard Vogel) (Associated Press)
Inés Ferré is a senior business reporter at Yahoo Finance. Follow her on X. Follow.
For the latest stock market news and in-depth analysis, including stock-moving events, click here.
Read the latest financial and business news from Yahoo Finance