Yahoo FinanceElon Musk’s Tesla recoups all its year-to-date losses after adding a staggering $150bn in market cap in just 3 days: ‘Worst is in the rear view mirror’
The swagger is back in Tesla’s step.
A few months ago, Elon Musk’s company was the butt of every joke on Wall Street, a growth stock with no growth to quote Wells Fargo. Pundits began questioning why anyone still even included it among the high-flying Magnificent Seven after Tesla trailed all 499 other stocks in the benchmark S&P index—even the scandal-ridden Boeing.
No longer. Just in time for the start of the second half, Tesla has fully recouped its year-to-date losses after adding an eye-watering $150 billion in value to its market cap over the span of just three days this week.
$TSLA investors right now pic.twitter.com/yqa3efRxkc— Teslaconomics (@Teslaconomics) July 3, 2024
“The worst is in the rearview mirror for Tesla as we believe the EV demand story is starting to return to the disruptive tech stalwart,” Wedbush Securities tech analyst Dan Ives wrote on Wednesday, upgrading his price target to $300 from $275 and reaffirming his “outperform” rating.
Musk is now back to his brash old self, exchanging one fantastical growth target that defies human reason for another while warning any short seller that gets in his way will be “obliterated”—Bill Gates included.
After consolidating around $180 for the better part of two months, bulls see further room for gains after the stock broke above the 200-day moving average under heavy trading volume and now looks like it could snap the three-year downward trend.
Tesla $TSLA has done it! 2.5 year downtrend finally broken 🥳🍾🫂 pic.twitter.com/9kEQejJoNb— Barchart (@Barchart) July 3, 2024
When one popular pro-Tesla account reminded the fan community late last month of the 2019 words of ARK Invest’s Cathie Wood regarding chart technicals that “the longer the base, the bigger the break out,” Musk quickly replied: “True.”
Q2 deliveries beat reduced expectations
This belief the stock has bottomed out and is poised to continue its rally in the coming months is reflected in some of the fundamentals now emerging.
Tuesday's announcement of second-quarter vehicle deliveries for example was a stark contrast to the first quarter figures that badly missed even the most bearish of forecasts. After expectations had consistently fallen in recent weeks, Tesla finally managed to draw a line under the issue by beating consensus with a comparatively mild decline in car sales.