Tesla shares at it again. Sometimes, when a stock goes wild, it can be difficult to find a convincing explanation. However, the move on Thursday appears to be rooted in the upcoming Cybertruck. However, not everyone agrees with this assessment.
Shares of Tesla (stock ticker: TSLA) have been on an impressive run recently, rising for the 10th day in a row, rising $10.29, or 4.6%, at $234.86. the
Standard & Poor’s 500
And
NASDAQ Composite
It rose 0.6% and 1%, respectively.
It was the most active stock in the Nasdaq 100 on Thursday, according to market data from Dow Jones. Thursday’s close was the highest since October. 6, when the stock closed at $238.13. The 10-day line yields a gain of over 28%. It is the longest winning streak since January. On August 8, 2021, when Tesla stock rose for 11 trading days in a row.
Shares are up about 15% in June and 90% for the year. However, it has fallen about 43% from record levels of about $410 per share, which are the levels it reached in November 2021.
But why gather now? Earnings are long gone, and second-quarter deliveries aren’t weeks due. Is it a Fed halt, an AI rebound, or a new Twitter CEO? maybe. But Cybertruck certainly had something to do with Thursday’s gains.
Announcement – scroll to continue
Electric mentioned Thursday that Tesla plans to produce 375,000 electric trucks a year. This is simply a lot more than Wall Street would expect. Analysts expect less than 100,000 units in 2024 and about 240,000 units by 2027. The 375,000 level is significant. Tesla sold about 252,000 Model Ys in the US in 2022. Cybertruck is primarily a North American product.
Tesla did not respond to a request for comment Barron About Cybertruck Production.
The truck, which was unveiled in 2019, is expected to ship later this year. It will be built at the Tesla factory in Austin, Texas.
There could be other reasons for Tesla stock to rise. Gary Black, co-founder of the Fund for the Future (FFND), took a poll on Twitter Thursday asking why the stock was soaring. Cybertruck third place. The winning option was to take back the full $7,500 tax credit for the Model 3 sedans. That happened earlier in the week.
Announcement – scroll to continue
Black commented on Barron That the potential sizes of the Cybertruck were large. However, with over 10,000 votes cast, and presumably individual investors who voted on Twitter, it’s hard to dismiss the lingering effects of the good tax credit news. Individual investors own a higher percentage of Tesla stock than is typical of other mega stocks.
Tesla stock sure looks stretched. The stock is well above its 200-day moving average of roughly $200 a share and the stock is considered overbought, which is a technical term that basically means the stock has gone up a lot quickly.
In practice, overbought stocks reflect a lot of good news, which is a short-term risk for any stock. Investors are not thinking about the risks now. They’re just thinking about the rewards of a new model that could be a huge success for the electric car giant.
Write to Al Root at [email protected]
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