Analysing Tesla’s Stock Performance in 2024

Tesla’s stock price saw a significant rise on Friday, managing to erase its year-to-date loss and bring its weekly gain to 27%. This surge propelled the stock to close at $251.55, representing a stark contrast to its low of $138.80 in April.

The recent rally in Tesla’s stock price was ignited by a better-than-expected deliveries report for the second quarter. While deliveries still witnessed a decline of 4.8% from the previous year, the drop was less severe than in the first quarter, providing investors with a glimmer of hope for the coming months.

Tesla faced several challenges earlier in the year, with a slowdown in automotive sales, significant layoffs, and reports about the cancellation of plans for a budget-friendly family car production at the Texas facility. These setbacks led to a dip in the stock price, reaching a 52-week low in April.

Tesla is slated to report its second-quarter financial results on July 23, with a particular focus on automotive gross margins. Despite offering discounts to stimulate demand for its existing EV lineup, Tesla faces expectations of fewer deliveries compared to the previous year. However, analysts anticipate a boost in the stock price following the company’s Robotaxi Day event scheduled for early August.

While Tesla has rebounded recently, it is trailing behind the broader market performance this year. Concerns regarding brand deterioration, attributed in part to Elon Musk’s controversial statements and behavior, have surfaced. Surveys have indicated a decline in brand perception among certain consumer segments, potentially impacting Tesla’s market positioning.

Despite initial promises of self-driving capabilities for Tesla vehicles, the company has faced delays in delivering the necessary software. Elon Musk’s announcement in 2016 about the hardware requirements for self-driving features has not materialized as expected, leading to ongoing concerns about the timeline for introducing this technology.

Overall, Tesla’s stock performance in 2024 has been marked by fluctuations, influenced by delivery numbers, product developments, and external factors such as brand perception and technological challenges. As the company navigates these issues, investors remain watchful of upcoming events and financial results that could shape Tesla’s trajectory in the coming months.

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