A super strong start in July! Tesla has returned to the top 10 market cap in the US, can it replicate the glory of 13 consecutive gains?

Futu News ·  Jul 10 19:03

In July, the hottest stock in the US stock market was Tesla.

Recently, Tesla's stock price has surged like a rocket. On Tuesday, Tesla closed up 3.71%, and the stock price has jumped to $262.33, 10 consecutive trading days of gains and a cumulative increase of nearly 44% over the past 10 days, setting the longest consecutive increase record in a year. From the US market value rankings, Tesla has returned to the top ten in market capitalization.

The dazzling performance in July not only helped Tesla wash away the shame of being the only falling stock among the seven US giants this year, but also made Wall Street believe in Tesla's growth myth once again.

Can it break the record of 13 consecutive gains?

As early as the beginning of June last year, Tesla set a record-breaking 13 consecutive trading days of gains, with a cumulative increase of more than 40%, and this wave of gains also increased Tesla's market value by more than $200 billion at that time.

It's worth noting that Futu News previously wrote an article"Tesla rises! With these "trump cards" in hand, the stock price rose sharply by 17% in two days. How should we deploy next?"Therefore, this has also sparked a discussion in the market, whether Tesla's current rise can break the record of "13 consecutive gains" last year.

In the past nine Julys, Tesla's stock price has risen six times, with a probability of 67%; among them, 2020 and July 2022 both saw significant increases, with a monthly increase of over 32%.

What are the prospects for the future?

In addition, Musk also plans to hold an event called Robotaxi Day on August 8, launching the fully automated driving service Robotaxi for the first time.

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.

According to a research report by McKinsey & Company, it is expected that by 2030, the market size of Robotaxi will exceed 2 trillion US dollars. IHS Markit predicts that by 2030, the total market size of China's shared travel market will reach 315 billion US dollars, of which Robotaxi will occupy 60% of the market share.

Wedbush analyst Dan Ives is more inclined to promote Tesla's artificial intelligence program, which he believes is the most undervalued artificial intelligence company in the market. The future AI business of Tesla may increase its value by $1 trillion. He emphasized Tesla's Robotaxi activity in August of this year, which he regarded as a new fuel for the rise of Tesla's stock price.

Garrett Nelson, senior stock strategist at CFRA Research, pointed out that Wall Street is now focusing on Tesla's self-driving taxi, and Musk has been talking about this fully automated driving service for several months, saying it may be a huge driving force for future growth.

In addition, Morgan Stanley released a report stating that Tesla holds a "key trump card" and is the key "winner" of the next round of AI investment. This "trump card" is not Tesla's AI or robot business, but its solar and energy storage business. The bank analyst said that thanks to the rapid development of the energy storage market, Tesla Energy's revenue in the 2024 fiscal year will exceed 7 billion US dollars. By 2025, the profit margin may exceed that of Tesla's car business. The future growth rate of Tesla's energy storage business will exceed that of its solar business, and by 2030, it will make a significant contribution to Tesla's overall profitability, giving Tesla Energy an estimated value of about $130 billion.

Of course, there are different voices in the market.

After experiencing 10 consecutive rises, Tesla's RSI index has reached 87 and has entered the overbought zone. Analysts believe that Tesla's current rise has a considerable Meme component, and from the trend since 2019, every time the RSI reaches a similar level, the stock price is a "stage high point".

What do you think of Tesla's future trend? Welcome to leave your comments in the comment section.

Translated from Chinese.



Translated from Chinese.

Translated from Chinese.


The translation is provided by third-party software.

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