Tesla investors turn stock around; Robotaxi buzz heats up

Tesla investors turn stock around; Robotaxi buzz heats up

Tesla to host its Robotaxi Day on Aug 8

Tesla shares are now positive for the year as downbeat investors change their tune on the outlook for Elon Musk’s electric vehicle maker with its highly anticipated Robotaxi on deck.

The stock on Friday wrapped its longest winning streak since June 13, 2023, when it rose for 13 straight trading days, as tracked by Dow Jones Market Data Group, closing at $251.52 per share.

The move erased its annual deficit, which last week was about 11%, and shares are now up 1.2% through Friday.

For the month, the stock is up 27%, compared to a 2% rise for the S&P 500.

Deliveries in the second quarter, reported last Tuesday, came in better than expected at 443,956, including 422,405 across its Model 3 and Ys and 21,551 across its other EV offerings. Still, deliveries are down over 4% compared to the same period a year ago.

Dan Ives, analyst at Wedbush Securities, is looking beyond those numbers, noting that EV demand is stabilizing globally and “the next stage of the Tesla story is unfolding” he wrote in a recent note to clients.

“The key for Tesla’s stock looking ahead is the Street recognizing that Tesla is the most undervalued AI play in the market in our view with a historical Robotaxi Day ahead for Musk and Tesla on August 8th that will lay the yellow brick road to FSD (full self-driving] and an autonomous future. We maintain our outperform rating and $300 with $400 our bull case,” he said.

Ives is among the majority, 22 of 50 analysts covering the stock that rate it a buy. The 18 recommend holding it while 10 say sell, according to ThomsonOne.

Musk retweeted a Tesla post on Sunday showcasing a hands-free Tesla ride reported by Whole Mars Catalog driving from “Golden Gate Park to Fort Point with zero interventions.”

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