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Investor's Corner

Tesla stock jumps and some think it’s because of this Elon Musk move

Photo: Boss Hunting.com.au

Tesla stock jumped over six percent on Monday morning, continuing gains that have the electric vehicle maker’s stock up over 19 percent so far in the past month.

There is speculation as to why Tesla shares continue to climb into this week, and some believe it is because CEO Elon Musk followed Uber founder Travis Kalanick just over one month before the company is set to unveil its Robotaxi on August 8.

Kalanick is no longer affiliated with Uber as he departed the company in 2017. However, he has an established and proven track record of developing a ride-sharing platform, which is what Tesla eventually wants to turn its Robotaxi into based on past revelations on an app and other quotes made by Elon Musk.

Tesla’s Robotaxi unveiling a ‘historical moment’ in story, catalyst to $1T market cap: Wedbush

However, while this is certainly something that is worth speculation, there are other reasons Tesla shares are gaining on Monday.

According to The Motley Fool, the gains are due to the Chinese EV market showing year-over-year growth. EV makers like BYD, who routinely has delivery figures in line with Tesla’s, reported 426,000 deliveries in Q2, which some believe could put Tesla somewhere around that number for the quarter.

Analysts are definitely torn between Tesla’s quarter and Wall Street’s expectation of a decrease from Q2 of last year but an increase from Q1 2024.

Analyst consensus puts expectations at 438,019 deliveries, which would put Tesla at less than 1 million vehicles for the first half of the year, as many hoped it would reach 2 million vehicles for the first time in its history.

However, Tesla is in between two growth waves as its next-generation platform and its Robotaxi will likely propel the company to more growth in the future. Even still, Tesla needs to execute and stay close to its projected timelines for these projects, something it has struggled to do in the past.

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Tesla stock jumps and some think it’s because of this Elon Musk move
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