Is the Worst in the Rearview Mirror?
It's ok to fall. It's not ok to stay there. Perhaps that's the new motto at Elon Musk's Tesla. The company has erased its year-to-date losses by adding a remarkable $150 billion in market value in just three days.Just a few months ago, Tesla was a laughingstock on Wall Street. Wells Fargo famously called it a growth stock with no growth. Analysts started to question why it was still considered among the high-flying "Magnificent Seven" after Tesla ranked last among 500 stocks in the S&P index.The worst seems to be behind them now. After a painful 40% decline from January to late April, the electric vehicle maker has almost recovered all its losses and is now just 0.8% down for the year.In the last couple of months, Tesla stock has surged by an impressive 75%, adding over $300 billion to its market cap.Earlier this week, Tesla released its second-quarter delivery numbers, which fueled a two-day surge of about 17% in its stock price. The company delivered 443,956 electric cars, surpassing expectations of 438,000 vehicles. However, the actual deliveries were lower compared to the previous year, which could be concerning. On an annualized basis, vehicle deliveries dropped by 4.7% compared to the same quarter last year, marking Tesla's second consecutive quarterly decline in sales. Yet, investors seem unfazed.It appears that speculation outweighs value investing in popularity. The fear of missing out continues to drive decisions, causing significant gains on positive news for popular stocks like Tesla, despite its high P/E ratio of 53.63.Overall, things are looking better for Tesla and maybe it’s even out of the slump. Moreover, according to the Bloomberg Billionaires Index, Elon Musk has regained the title of the world's richest person. Are there any other concerns left to worry about? This article was written by FL Contributors at www.forexlive.com.
It's ok to fall. It's not ok to stay there. Perhaps that's the new motto at Elon Musk's Tesla. The company has erased its year-to-date losses by adding a remarkable $150 billion in market value in just three days.
Just a few months ago, Tesla was a laughingstock on Wall Street. Wells Fargo famously called it a growth stock with no growth. Analysts started to question why it was still considered among the high-flying "Magnificent Seven" after Tesla ranked last among 500 stocks in the S&P index.
The worst seems to be behind them now. After a painful 40% decline from January to late April, the electric vehicle maker has almost recovered all its losses and is now just 0.8% down for the year.
In the last couple of months, Tesla stock has surged by an impressive 75%, adding over $300 billion to its market cap.
Earlier this week, Tesla released its second-quarter delivery numbers, which fueled a two-day surge of about 17% in its stock price. The company delivered 443,956 electric cars, surpassing expectations of 438,000 vehicles.
However, the actual deliveries were lower compared to the previous year, which could be concerning. On an annualized basis, vehicle deliveries dropped by 4.7% compared to the same quarter last year, marking Tesla's second consecutive quarterly decline in sales. Yet, investors seem unfazed.
It appears that speculation outweighs value investing in popularity. The fear of missing out continues to drive decisions, causing significant gains on positive news for popular stocks like Tesla, despite its high P/E ratio of 53.63.
Overall, things are looking better for Tesla and maybe it’s even out of the slump. Moreover, according to the Bloomberg Billionaires Index, Elon Musk has regained the title of the world's richest person. Are there any other concerns left to worry about? This article was written by FL Contributors at www.forexlive.com.
