BTN News: Tesla’s stock closed at $209.86 on Monday. It went up by 6.05%, making it the top performer of the day. This rise marks the fifth straight day of gains for the electric car maker. This happened before its second-quarter vehicle delivery report.
Tesla’s Five-Day Rally and Market Cap Growth
Over the past five days, Tesla’s stock has risen 14.94%. It went up from $182.58. This increase added $86.997 billion to its market value. It now stands at $669.285 billion, up from $582.288 billion.
Anticipation of Tesla’s Second-Quarter Delivery Data
David Lara, an analyst at Casa Punto de Bolsa, said that Tesla’s stock rise is due to the upcoming second-quarter delivery data. This report is expected on Tuesday. Analysts think vehicle deliveries from April to June will drop by 6% compared to the same period last year.
Lower Delivery Growth Expected by Tesla
In January, Tesla warned investors about lower delivery growth for the year. Even though there was a small increase in Q2 2024, Tesla’s report in May did not confirm its old goal of making 20 million electric cars each year by 2030.
Competition and Demand Challenges Facing Tesla
Tesla’s delivery drop is due to lower demand and more competition from Chinese rivals like BYD, JAC, Geely, Xiaomi, and Chery. In 2023, Tesla made 433,000 cars but delivered only 387,000. BYD, on the other hand, sold 3 million vehicles and increased exports by 334.2% to 247,765 units, becoming a leader in electric vehicles.
Investor Optimism Despite Challenges for Tesla
Even with expected delivery declines, investors are hopeful about Tesla’s future. Recently, Tesla has cut prices on some models. This is to enter the low-cost electric car market and boost its finances against strong Chinese competition. Also, Tesla is focusing on fully autonomous driving technologies.
Regulatory Relief in China for Tesla
In late April, Elon Musk visited China. Chinese authorities lifted data security restrictions on Tesla vehicles. This move could benefit Tesla.
Tesla Stock Performance in 2024
Despite the five-day rise, Tesla’s stock has dropped 15.64% in 2024. It fell from $248.48 in December. The company also lost $120.61 billion in market value. Among the “Magnificent Seven” tech giants—Microsoft, Nvidia, Apple, Amazon, Meta, Alphabet, and Tesla—Tesla is the only one with losses this year. The stock hit a low of $140.52 on April 22 but has since risen by 48.65% as of July 1.
Tesla and Apple Boost Nasdaq and Broader Market
Tesla and Apple lifted the Nasdaq tech index, which closed higher on Monday. The Dow Jones and S&P 500 saw small gains. Apple rose 2.91%, Microsoft 2.19%, and Amazon 2.04%. Nvidia, Alphabet, and Meta also saw slight increases.
Semiconductor and Real Estate Sectors Performance
Semiconductor stocks like Advanced Micro Devices and Arm Holdings fell. This dragged the semiconductor index close to a one-week low. Real estate stocks also fell as U.S. Treasury yields went up. However, the banking sector benefited, with JPMorgan Chase shares hitting record highs.
Market Activity Ahead of Independence Day
Trading volumes were low on Monday. The U.S. stock market will close on Thursday for Independence Day. Lower trading activity is expected this week.
Key Index Movements on Monday
The S&P 500 gained 0.27% to 5,475.09. The Nasdaq Composite rose 0.86% to 17,876.26. The Dow Jones Industrial Average edged up 0.13% to 39,169.52 points.
