June 16, 2024

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Tesla stock is rising again. This time it’s time for the e-truck.

Tesla stock is rising again.  This time it’s time for the e-truck.

Tesla shares at it again. Sometimes, when a stock goes wild, it can be difficult to find a convincing explanation. However, the move on Thursday appears to be rooted in the upcoming Cybertruck.

Shares of Tesla (ticker symbol: TSLA) have been on an impressive run lately, rising for the 10th day in a row, rising nearly 3% to $232.92. the

Standard & Poor’s 500


NASDAQ Composite

They increased by 0.4% and 0.9%, respectively.

All numbers are great. The stock is the most active in the Nasdaq 100 on Thursday, according to Dow Jones market data. The $232.92 level would be the highest close since October 6, 2022, when the stock closed at $238.13. Shares were on track for their biggest percent increase since May 30, when they rose 4.1 percent. The 10-day line yields a gain of over 27%. It is the longest streak of consecutive gains since January 8, 2021, when Tesla stock rose for 11 trading days in a row.

Shares are up about 14% in June and about 90% for the year. However, it is down about 43% from its all-time highs of about $410 per share, the levels it reached in November 2021.

But why gather now? Earnings are long gone, and second-quarter deliveries aren’t weeks due. Is it a Fed halt, an AI rebound, or a new Twitter CEO? maybe. But Cybertruck certainly had something to do with Thursday’s gains.

Announcement – scroll to continue

Electric mentioned Thursday that Tesla plans to produce 375,000 electric trucks a year. This is simply a lot more than Wall Street would expect. Analysts expect less than 100,000 units in 2024 and about 240,000 units by 2027. The 375,000 level is significant. Tesla sold about 252,000 Model Ys in the US in 2022. Cybertruck is primarily a North American product.

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Tesla did not immediately respond to a request for comment Barron About Cybertruck Production.

The truck, which was unveiled in 2019, is expected to ship later this year. It will be built at the Tesla factory in Austin, Texas.

Announcement – scroll to continue

Tesla stock sure looks stretched. The stock is well above the 200-day moving average of roughly $200 a share and the stock is overbought, which is a technical term that basically means the stock has gone up a lot quickly.

In practice, overbought stocks reflect a lot of good news, which is a short-term risk for any stock. Investors are not thinking about the risks now. They’re just thinking about the rewards of a new model that could be a huge success for the electric car giant.

Write to Al Root at [email protected]