Nandini Roy Choudhury, writer
News in brief
Tesla’s stock price rose by 27% on Friday, making up for its loss for the year and giving it a 27% weekly gain. The company closed at $251.55, with prices peaking at $248.48 at the end of last year and dropping as low as $138.80 in April. A better-than-expected report on supplies for the second quarter sparked the most recent rise, with sales being 4.8% lower than the same time last year. Tesla has been giving discounts and other benefits since last year to encourage people to buy its older electric vehicles (EVs). Cantor Fitzgerald analysts believe that Tesla will deliver fewer cars this year than last year and wants its stock price to reach $230. However, Tesla is still behind the market overall for the year, with the Nasdaq up 22% and the S&P 500 up 17%. A recent study found that Elon Musk’s “antics” and political rants are partly to blame for the company’s declining reputation.
News in details
Tesla’s stock price went up enough on Friday to make up for its loss for the year and give it a 27% weekly gain.
Friday, shares of the company that makes electric cars closed at $251.55. Prices peaked at $248.48 at the end of last year and dropped as low as $138.80 in April.
A better-than-expected report on supplies for the second quarter on Tuesday sparked the most recent rise. Even though sales were 4.8% lower than the same time last year, the drop was not as big as the drop in the first quarter. This gave investors reason to be optimistic about the second half.
Tesla stock hit a 52-week low in April, following a string of bad events. In the first quarter, sales in the core automobile business went down. The company cut jobs in a big way, and there were rumours that Tesla had scrapped plans to soon make a cheap family car at its plant in Texas.
After the bell on July 23, Tesla will report its financial numbers for the second quarter. Gross profits for cars are going to be the topic of discussion.
Tesla has been giving big discounts and other benefits since last year to get people to buy its older electric vehicles (EVs). These include the Model 3 sedan, the Model Y crossover utility vehicle, and the more expensive Model S sedan and Model X SUV.
Tesla began selling its sharp Cybertruck in late 2023. On Thursday, the Tesla Cybertruck account on the social media site X said that the truck had sold more than any other fully electric pickup in the U.S. in the second quarter.
Ford said that the F-150 Lightning, its fully electric model, sold 7,902 units in the second quarter and 15,645 units through June of this year.
CNBC asked Tesla for more information, but they didn’t answer.
In a note released on Tuesday, Cantor Fitzgerald analysts said that a marketing event called Tesla’s Robotaxi Day at the beginning of next month would be a big boost for the stock.
“TSLA has already talked about its plans for a Robotaxi (or Cybercab), which it will show off on August 8,” they wrote. “This segment won’t start up until at least 2027, but we think it will be an important part of the company’s business in the long run.”
Cantor Fitzgerald still thinks that Tesla will deliver fewer cars this year than they did last year. The company wants Tesla’s stock price to reach $230 and says that investors should buy it.
Even though Tesla has come back, it is still behind the market overall for the year. In 2024, the Nasdaq has gone up 22% and the S&P 500 has gone up 17%. Tesla is up 1.2% right now.
A recent study by Axios Harris found that Musk’s “antics” and “political rants” are at least partly to blame for the company’s declining reputation. This week, the New York Times published a poll that said Musk’s “political activity” and “polemics” are turning away some “left-leaning consumers.”
Also, Tesla is still years behind schedule on releasing software that can turn its current cars into self-driving ones. As of October 19, 2016, Musk said that all Tesla cars being made at the time had the tech to drive themselves. But at the end of June, he said that more gear and sensors are on the way to make that possible.
Source : CNBC News
