U.S. electric vehicle company Tesla continues its unstoppable stock rally. With vehicle delivery results exceeding market expectations, investor sentiment has significantly improved, leading to a 10-trading-day consecutive rise. Tesla's stock price has soared by a remarkable 89% compared to the year-to-date low recorded in April.
On the 9th (local time) at the New York Stock Exchange, Tesla closed at $262.33 per share, up 3.71% from the previous session. The stock has maintained an upward trend for 10 consecutive trading days since the 25th of last month, recording a 43.6% increase during this period. Its market capitalization also grew to $836.6 billion, re-entering the top 10 in the New York Stock Exchange market cap rankings.
The closing price on this day was the highest in nine months since October 11 last year ($262.99). Despite concerns about slowing electric vehicle demand and profitability pressure due to price cuts, the stock price rose about 89% compared to the year-to-date low in April ($138.8). At that time, Tesla's stock had fallen 44% from the beginning of the year, but the recent rally has offset this decline, turning positive.
This is analyzed as a result of significantly improved investor sentiment toward Tesla around the announcement of the second-quarter vehicle delivery results. Seth Goldstein, a stock strategist at Morningstar, said, "The market is suddenly evaluating Tesla's growth potential," adding, "The market had expected lower growth after a decline in first-quarter delivery results. Therefore, we can see a bigger rally after the second-quarter delivery announcement."
Tesla's second-quarter deliveries (443,956 units) decreased by 4.8% year-over-year but increased nearly 15% compared to the previous quarter, the first quarter. Wall Street estimates were also exceeded. Additionally, the energy storage device segment recorded its best quarterly performance ever, suggesting the possibility of expanding market share, which was also positively evaluated.
The key point is the quarterly earnings announcement scheduled for the 23rd. Wall Street believes that Tesla's rally will either continue or falter depending on this announcement. There is also interest in whether a clear and concrete schedule for the development of a more affordable electric vehicle, which the market expects, will be disclosed. Tesla had previously stated that a launch could be possible in 2025.
Goldstein said, "If these expectations are met or achieved earlier, we can assume Tesla's vehicle deliveries will increase from 2026," adding, "As long as this optimism is maintained, the stock price will be fine. However, if the launch is delayed or management speaks ambiguously, the stock price will be shaken." Additionally, RoboTaxi Day scheduled for August 8 is also considered one of Tesla's remaining positive catalysts that investors are watching.
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