Unknowingly, Tesla has risen for 9 consecutive trading days.

$Tesla (TSLA.US)$Recently, the stock price has skyrocketed. On Monday, Tesla's closing price rose by 0.56%, and the stock price has soared to $252.9, which has risen for 9 consecutive trading days.

Although the nine consecutive rises are impressive, there is considerable disagreement among Wall Street analysts about Tesla's future stock price trends. The difference between their highest and lowest target prices for Tesla is about $200, which is equivalent to 80% of Monday's closing price, while this ratio for Apple, also one of the 'big seven', is about 40%.

This is not entirely their fault, after all, Tesla's stock price performance is quite extreme and unstable. In the past five years, Tesla's stock price has been higher than Wall Street's average target price for nearly 50% of the time, while Apple's stock price has only been higher than Wall Street's average target price for 20% of the time. This means that Tesla's stock price volatility is much higher than that of Apple.

Moreover, as one of the 'big seven' in the US stock market, Tesla was the only stock among these seven stocks that was projected to be in the red in 2024 until last week. Thanks to the nine consecutive rises, Tesla's increase in stock price has finally reached about 2% this year.

As of Monday, the average increase in stock price for Microsoft, Nvidia, Apple, Amazon, Alphabet, and Meta in 2024 is about 53%, far ahead.

Tesla's nine consecutive rises are inseparable from better-than-expected electric vehicle deliveries.

Some analysts believe that the electric vehicle business is the driving force behind Tesla's rise in stock price.

Gary Black, co-founder of Future Fund Active ETF and Tesla shareholder, pointed out that with delivery pressure easing, the core electric vehicle business has stabilized, and the automotive business is the key driver of Tesla's rise in stock price.

On July 2, Tesla announced that its second-quarter car deliveries were better than expected. Deliveries of 0.443 million units were higher than expected by the market, although they were down 4.8% year on year, but the decline was not significant. Wall Street had previously predicted that deliveries would fall by more than 15%.

Good electric vehicle performance has brought confidence to investors, who believe that Tesla will once again achieve growth in 2025. The market expects Tesla's deliveries in 2024 to reach about 1.8 million units, the same as in 2023. The good delivery volume has also stabilized profit forecasts. Wall Street initially predicted Tesla's earnings per share to be about $3.8, but now it is about $2.4.

Brian Rauscher, founder of BFR Research, said that investors do not like to buy stocks with declining profit expectations. Although Tesla's profit expectations have not risen much, they are not so bad for investors.

Tesla's nine consecutive rises, also driven by individual investor speculation?

However, there are different opinions about Tesla's nine consecutive rises in the market.

For example, Toni Sacconaghi, stock analyst of AB Bernstein, believes that Tesla's stock price may continue to rise for a while, but frankly speaking, this is like the previous meme stock frenzy, which is the result of the irrational speculation of retail investors, because Tesla's valuation is divorced from its fundamentals.

Sacconaghi's comment stirred up a wave of criticism on social media, with many questioning Sacconaghi.

'This is a FOMO game between institutions and retail investors.'

'The enthusiasm of retail investors is also one of the fundamental factors. When the meme economy is strong, Tesla will also rise.'

'What kind of meme stock has factories in multiple countries? And doing business with leaders of various countries? Isn't the entire stock market about hope for the future? Aren't all predictions and spreadsheets just fancy guesswork?'

From these comments, it can be seen that many people are still very bullish on Tesla's future.

Now both profit expectations and car delivery volumes are related to Tesla's auto business, and if Tesla's stock price wants to climb even higher in the future, it needs a stable AI business, which can bring more hope to Tesla's shareholders.

Wedbush analyst Dan Ives said Tesla is the most underestimated AI company in the market, and the value of Tesla's AI business may increase by $1 trillion in the future. If the robotaxi event on August 8th is a big success, it may push the stock price even higher.

Editor/Somer