Shares of Tesla (TSLA) rose as much as 1.1% in early trading on Friday, putting the shares on track to extend their longest winning streak in more than a year and remain the market leader.
After rallying 30% in the past seven sessions – and up nearly 40% in the past month – the stock is nearing a breakeven point for 2024, having fallen as much as 40% from mid-April to date.
Over the past month, the S&P 500 is up a more modest 3.5%.
Tesla’s extended rally comes as the automaker beat quarterly deliveries earlier this week.
In addition to these production and delivery results, Tesla bulls have also highlighted the company’s fastest growing segment: its energy storage business.
“Tesla started its Independence Day celebration early with positive second-quarter deliveries, 33,000 lower inventory and a big markup to remind investors it’s not just a car company,” Morgan Stanley’s Adam Jonas wrote in a recent note.
Another positive catalyst came after the release of the Chinese provincial government’s purchase list, which included locally built Tesla cars on Thursday.
The catalog for eastern China’s Jiangsu province includes Tesla’s Model Y vehicle, meaning government employees will be allowed to buy the vehicle as a service car, according to Reuters.
Tesla has faced stiff competition abroad from its Chinese counterparts and declining demand for electric vehicles in the US. In an effort to cut costs, the company earlier this year initiated a plan to lay off more than 10% of its global workforce, which some analysts said signaled tough times ahead.
The company also cut prices last year to boost sales.
At Tesla’s shareholder meeting last month, CEO Elon Musk confirmed that near-term demand and revenue will still be somewhat difficult as the industry goes through a transition period.
‘There is still the risk of further price cuts, and that is true [are] There are more questions about the fundamentals, but we’re still in something of an on-demand EV winter,” Dan Levy, senior equity research analyst at Barclays, told Yahoo Finance earlier this week. “So good result . But I think the fundamental macro backdrop is still the same.” Levy has an Equal Weight rating on the stock and a $180 price target.
Tesla will announce its quarterly results after the market closes on July 23. Analysts are also looking ahead to August 8, when the company will unveil its highly anticipated robotaxi.
“The key for Tesla stock is for the Street to recognize that Tesla is the most undervalued AI play on the market,” Wedbush CEO Dan Ives wrote in a note this week as he raised his price target on the stock from $275 to $300 with a new price target. bull case of $400 for 2025.
Ives added the company’s robotaxi event on August 8 “where the yellow brick road will be built” [full self-driving] and an autonomous future.”
The stock has recovered all its losses year to date and is up more than 70% from its late April low.
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X @ines_ferre.
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