Tesla Inc. extended its winning streak on Tuesday, marking its longest run of gains in over a year and closing at its highest level since October, writes Market Watch.
The company’s stock, ticker TSLA, surged 3.7% during Tuesday’s trading session, notching its 10th consecutive day of increases. According to Dow Jones Market Data, this streak is Tesla’s longest since it rose for 13 straight days ending last June.
Over the past 10 trading sessions, Tesla shares have climbed 43.7%, marking its strongest 10-day performance since it surged 48.1% in a period ending February 2, 2023.
Tesla’s stock ranked as the third-best performer in the S&P 500 on the day and was the second-most actively traded stock during the session. The closing price of $262.33 represents Tesla’s highest finish since October 11, 2023, when it closed at $262.99.
The recent momentum for Tesla’s stock represents a significant turnaround. After experiencing substantial year-to-date losses through the first half of the year, Tesla’s shares have now risen 5.6% for the year. However, within the technology-themed “Magnificent Seven” group of stocks, Tesla’s performance remains the weakest.
During this winning streak, Tesla’s market capitalization has increased by approximately $250 billion, surpassing the total market caps of all automakers except Toyota Motor Corp., according to Dow Jones Market Data.
The surge in Tesla’s stock follows better-than-expected delivery numbers released at the beginning of July, which contributed to its upward momentum.
Analyst Colin Rusch from Oppenheimer acknowledged Tesla’s progress in vehicle sales recovery and inventory management, noting these as positive signs for Tesla’s business health. Despite this optimism, Rusch maintained a cautious stance, highlighting concerns over margins and Tesla’s ability to monetize its Full Self-Driving feature.
Rusch emphasized that the future direction of Tesla’s stock will hinge significantly on the perceived value and monetization potential of its FSD/AI platform. He reiterated his perform rating on the stock, indicating a balanced outlook amidst the recent stock performance.
