At the beginning of this year $TSLA was struggling. They were down to $101 on January 6th 2023, after trading at the $300 range 4 months earlier in September 2022.
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Tesla investors were concerned with Elon's Twitter acquisition, Tesla was cutting the prices of their EV Vehicles left and right, and there was no end to the bad news in sight.
Tesla's Most Recent Bull Run Is One For The Record Books
However as we know, things can change in the blink of an eye in the stock market, especially when Elon Musk is involved, and that's exactly what happened. Tesla is now up to $260, up 50% just this month alone. It's like the company discovered the secret formula to generating bulls runs, and investors are all about it. But can this winning streak continue? Let's dive into the reasons behind Tesla's stock surge and find out if it's all sunshine and rainbows or if there might be a few bumps in the road ahead.
$TSLA Out Performing Tech Heavy NASDAQ
First things first, macroeconomics have played a role in Tesla's success. Improvements on the economic front have given the automaker a boost, but here's the kicker: while the NASDAQ is up a modest 10% in the last 30 days, Tesla has gone full speed ahead, shooting up a whopping 50%. Talk about leaving the competition in the environmentally friendly dust!
GM and Ford Using Tesla's Charge Stations
One key driver of Tesla's ascent is the adoption of NACS (that's Tesla's charging connector and charge port for their EV Vehicles) as the new North American charging standard. What this means is that other EV Vehicle Producers such as GM and Ford have announced that they plan on using Tesla's Charging Ports/Connectors for it's next generation of EV Vehicles, as well as selling adapters for current EV Vehicle owners who want to use Tesla's Charging Stations with non-Tesla vehicles. Wall Street analysts are now considering Tesla's Supercharger business as a potential gold mine. With major players like GM and Ford hopping on the Tesla bandwagon and using the NACS connector, analysts believe Tesla's charging business could rake in billions of dollars in revenue each year by the end of the decade. It's like Tesla's Superchargers are the new money printers, but instead of cash, they spit out electrons.
But it's not just the revenue potential that has investors excited. The adoption of NACS also validates Tesla's charging approach as the superior one, and could benefit the overall EV market in North America if it becomes the unified charging standard as it would make it more convenient for EV Owners of any brand to charge their cars. It's a win-win situation for Tesla and the entire electric vehicle ecosystem. It's like Tesla is throwing a party, and everyone wants an invite.
No More Price Cuts On Tesla Vehicles?
Another factor contributing to Tesla's stock surge is the company's newfound calmness when it comes to price changes. Tesla seems to have hit the brakes on its constant price adjustments of their vehicles, which has instilled more confidence in the market regarding the demand for Tesla EV vehicles. Sure, there are still some inventory vehicles being discounted, but it's mostly limited to the Model 3. Rumor has it that Tesla might be clearing out inventory ahead of the highly anticipated Model 3 refresh. And let's not forget, somehow Tesla managed to access the full tax credit on its base Model 3, a little extra boost that didn't hurt their cause. What this means is all versions of the Tesla Model 3 qualify for the $7,500 purchase tax credit which was passed as part of the Inflation Reduction Act.
There are also reports that Tesla plans on producing more than 35,000 Cybertrucks per year. All this news mixed with the fact that Elon Musk recently named a new Twitter CEO (which will give him more time to run Tesla) has investors FOMOing into $TSLA left and right this past month!!
It's Not ALL Good News For Tesla
But let's not get carried away with all the positive news. There have been some whispers of trouble in paradise. Leaked internal documents and reports have revealed concerns among Tesla engineers about the upcoming Cybertruck. Apparently, the preproduction "alpha" versions of the Cybertruck have been grappling with basic engineering issues like suspension, body sealing, noise levels, handling, and braking. Oops! It's not the smooth ride we were expecting from the futuristic truck. However, Tesla's fearless leader, Elon Musk, remains undeterred as always, promising a Cybertruck delivery event later this year and limited production volumes shortly after. Let's hope they can iron out those kinks and deliver the Cybertruck experience of our dreams.
Is Tesla Still A BUY At These Current Levels?!?!
So, there you have it. Tesla's winning streak has been nothing short of electrifying. From the adoption of NACS to partnerships with GM and Ford, the stars seem to be aligning for the electric vehicle giant. But as with any roller coaster, there are ups and downs. Can this one continue it's Bullish streak up?
Well let's see what our Analyst Jay who called out Tesla at the $105 range (see the video at the top of this blog) has to say...
"I would look at a bullish retest of the previous high of this year. The $220 area. BUT it might just continue to RIP!! Either way I believe it could go to $325 this year, in my humble opinion. If you have any questions about Tesla, feel free to ask me on our Free Trading Discord!!" -Jay
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Only time will tell if Tesla can maintain its momentum and keep investors riding high. One thing's for sure, though: Tesla is always ready to put the pedal to the metal and keep us guessing what the future holds. Charge forward, Tesla, and may the stock market be forever in your favor!
