Source: Wall Street See News Author: Bu Shuqing.

Tesla has regained its past momentum! Due to sales exceeding expectations in the first quarter, Tesla's stock price skyrocketed 27% this week, easily erasing the decline in the past six months, and the market's slump sentiment has been swept away. From a product structure perspective, the operating income of the 10-30 billion yuan product was 401/1288/60 million yuan, respectively.

Tesla's vehicle deliveries in the second quarter decreased nearly 5% year-on-year, marking the second consecutive quarter of decline, but the result exceeded Wall Street's expectations. With second-quarter deliveries, Tesla also maintained the top spot in global electric-vehicle sales.

Boosted by sustained catalysts in second-quarter delivery figures, Tesla's stock price rose 2.08% to $251.52 on Friday, up 27% for the week, and skyrocketed 38% in the past eight trading days, setting a record for the longest uptrend in over a year.

This upward momentum has also allowed Tesla's stock price to rebound for the first time in 2024, after hitting its 52-week low in April.

"Tesla's worst days are behind it, and we believe the EV story is starting to shift back to this disruptive technology powerhouse," Wedbush Securities technology analyst Dan Ives wrote on Wednesday, raising his Tesla target price to $300 from $275 and reiterating a "outperform" rating.

From laughing stock to model, Tesla delivered impressive results at a critical moment.

A few months ago, Tesla was a laughing stock on Wall Street.

Due to frequent and significant price cuts, automotive gross margins were weakened, and cooling demand for electric vehicles led to Tesla's first year-on-year decline in deliveries since 2020 in the first quarter. Coupled with increasingly fierce competition in key markets, Tesla's stock price suffered a severe blow. In order to cut costs, Tesla also conducted a large-scale and high-profile layoff action.

At the time, in the words of Wells Fargo, Tesla was a growth stock without growth.

Tesla was once behind all other 499 stocks in the S&P 500 index, including scandal-plagued Boeing. Some began to question whether Tesla still deserved its place among the "Big Seven".

Ives described Tesla's first-quarter deliveries as a "nightmare" and a "total disaster", but after second-quarter deliveries exceeded Wall Street's expectations, Ives began to believe that Tesla had regained the market's confidence in its growth narrative.

This was a significant counter-attack performance by Tesla and Musk in the second quarter, with Wall Street predicting a clear decline this quarter and global EV demand still fluctuating, but Tesla delivered strong sales results at a critical moment for investors.

After more than two months of consolidation around $180, bulls are now seeing further upside potential in Tesla's stock price.

On the one hand, with significantly increased trading volume, Tesla's stock price has successfully broken through the 200-day moving average. The current trend suggests that Tesla's stock may be about to end its three-year downward trend.

Can the surge continue? The next month is crucial.

Despite better-than-expected second-quarter deliveries, Tesla still faces challenges.

Tesla is developing low-cost EV models to attract price-sensitive buyers, and is also further betting on autonomous driving technology and humanoid robots.

The second-quarter earnings report, to be released on July 23, may give investors a preliminary understanding of Tesla's progress in new product development. In addition, automotive gross margins may also be a focus of attention.

Musk also plans to launch the Robotaxi for the first time on August 8th at an event called "Robotaxi Day".

According to a report by Cantor Fitzgerald analyst, this event is expected to be an important catalyst for Tesla's stock price.

Although we do not expect this business division to be launched before 2027, we do anticipate that it will become an important business sector for the company in the long term.

Cantor Fitzgerald expects Tesla's car deliveries to be lower than last year. The company has a target price of $230 for Tesla and a "buy" rating.

It is worth noting that although Tesla's stock price has rebounded significantly, its performance this year lags behind the large cap. Since the beginning of this year, the Nasdaq index has risen by 24%, the S&P 500 index has risen by 17%, while Tesla has only risen by 1.3%.

In addition, a recent Axios Harris opinion poll found that Tesla's brand image is declining, partly due to Musk's "farcical actions" and "political statements." A survey released by the media this week also found that Musk's "polarizing comments" and "political activities" are driving away some "left-leaning consumers."

Editor/Lambor