From Nasdaq: 2024-07-09 09:38:55

In July, Tesla’s stock surged 27% in just one week, turning positive for the year after being the worst S&P 500 performer of 2024. Despite being the worst in the “Magnificent 7” stocks, Tesla added $200 billion in market cap, sparking speculation on its future performance.

Improvements in sentiment towards Tesla were seen after shareholders approved Elon Musk’s compensation package. Better-than-expected Q2 deliveries added to the positive trend, easing concerns over the company’s performance. Analysts noted that Tesla’s worst days could be behind it, with expectations of a recovery in its China business.

Tesla is due to release its Q2 earnings on July 23, with a focus on operating margins and demand outlook. The upcoming robotaxi unveiling on August 8 could be a significant event, as the company’s valuation heavily relies on its AI products. Analysts have split views on Tesla, with concerns over its growth in 2024, but expectations of a rebound in revenues and earnings in upcoming years.

Cathie Wood of ARK Invest sees Tesla as a major AI project globally, with a target price revised to $2,600 by 2029. Analysts like Ives view Tesla as an undervalued AI play, with optimism around the upcoming robotaxi unveil potentially supporting the stock rally. However, the success of the robotaxi could determine Tesla’s future trajectory, with recent gains reflecting optimism over its autonomous driving progress.



Read more at Nasdaq: TSLA Stock Forecast: Will Tesla Keep Going Up in 2024?