Tesla stock (TSLA) rose 2% on Friday as shares extended their winning streak for an eighth straight session and erased their year-to-date losses.
After a 37% rally over the past eight sessions — and a 43% rise in the last month — the stock is now in positive territory for 2024, completing a remarkably quick turnaround. The stock had fallen as much as 40% year-to-date as of mid-April.
Over the last month, the S&P 500 is up a more modest 4%.
Tesla’s extended rally comes as the car manufacturer beat on quarterly deliveries earlier this week.
Aside from these production and delivery results, Tesla bulls have also highlighted the company’s fastest-growing segment — its energy storage business.
“Tesla started its Independence Day celebration early with a positive 2Q delivery beat, 33k lower inventory and a large storage beat to remind investors it’s not just an auto company,” wrote Morgan Stanley’s Adam Jonas in a recent note.
Another positive catalyst came following the publication of China’s provincial government purchase list, which included locally built Tesla cars on Thursday.
The catalog for Jiangsu province in eastern China included Tesla’s Model Y vehicle, meaning government workers are allowed to purchase the vehicle as a service car, according to Reuters.
Customers buy electric cars at a Tesla store in Hangzhou, East China’s Zhejiang province, Aug. 14, 2023. (CFOTO/Future Publishing via Getty Images) (Future Publishing via Getty Images)
Tesla has faced stiff competition abroad from its Chinese counterparts and some waning demand for EVs in the US. In an effort to reduce costs, the company embarked on a plan to cut more than 10% of its global staff earlier this year in what some analysts saw as a signal of tough times ahead.
The company also slashed prices last year to spur sales.
During Tesla’s shareholder meeting last month, CEO Elon Musk confirmed that near-term demand and sales would still struggle somewhat as the industry goes through a transitionary period.
“There is still the risk of further price cuts ahead, and there [are] still further questions…
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