What's Going on With Tesla Stock? | TSLA Stock Analysis

Summary

This video explores the recent surge in Tesla's stock price from $180 to $260 per share within a month, attributing it to two key factors. Despite a year-over-year decrease in vehicle deliveries, investors reacted positively to a smaller decrease quarter-over-quarter, signaling a potential inflection point. Additionally, European tariffs on Chinese-made cars may benefit Tesla more than its competitors, as it could lessen the impact on them compared to Chinese rivals. However, despite these positive signs, Wall Street's earnings per share expectations for Tesla have declined, indicating that the stock price increase is driven by investor enthusiasm rather than immediate financial performance.

Takeaways

• 🚀 Tesla's stock price surged from $180 to $260 per share within a month, indicating a significant rally for the company's shares.
• 📈 The rally was fueled by two major factors: an improvement in vehicle delivery numbers and changes in European tariffs affecting Chinese-made cars.
• 📊 Despite a year-over-year decrease in vehicle deliveries, the second quarter saw a 14.8% increase from the first quarter, which was a positive sign for investors.
• 🔄 The change in delivery trend from a significant drop to a smaller decrease indicated an inflection point, which was well-received by the market.
• 🛠️ Tesla's performance is still strongly tied to its vehicle deliveries, as they are essential for selling software upgrades and expanding its services.
• 🌍 The European tariffs on Chinese-made cars could potentially benefit Tesla, as it may impact its Chinese competitors more negatively.
• 💰 Tesla's valuation increase might be due to the expectation that its competitors will be more affected by the tariffs, reducing competition.
• 📉 Wall Street's earnings per share expectations for Tesla have worsened, not improved, reflecting concerns about the company's financial performance.
• 🏁 Tesla's stock price increase is not based on current or near-future profits but on investor enthusiasm for its long-term potential in AI and self-driving technology.
• 🔮 The market is valuing Tesla based on its future prospects rather than current financials, which is a risky approach as it's speculative.
• 📚 The script contrasts Tesla with Nvidia, which is seeing its value increase due to proven roles in the AI market and expanding revenue, profits, and cash flow.

Q & A

What was the recent significant change in Tesla's stock price?

Tesla's stock price has jumped from $180 per share to $260 per share in just one month.

What is the role of the sponsor mentioned in the video?

The sponsor, mle fo, is mentioned for sponsoring the video and promoting their website full.com parev, which lists the 10 best stocks to buy now.

What was the total number of vehicle deliveries reported by Tesla for the latest quarter?

Tesla reported a total of 443,000 vehicle deliveries for the latest quarter.

How did the year-over-year delivery numbers compare for Tesla in the latest quarter?

The total number of deliveries fell 4.8% from the previous year, marking the second consecutive quarterly decrease.

Why did investors react positively to Tesla's delivery numbers despite a year-over-year decrease?

Investors liked the news because the decrease was smaller than the 88.5% drop in the first quarter, indicating an improvement in the trend of declining year-over-year deliveries.

What is the significance of Tesla's vehicle deliveries for its long-term performance?

Tesla's vehicle deliveries are strongly correlated to its long-term performance as it needs a large fleet of vehicles to sell software upgrades and services like full self-driving and energy solutions.

How do European tariffs on cars made in China potentially benefit Tesla?

The tariffs could negatively impact Tesla's Chinese competitors more than Tesla itself, potentially reducing competition and benefiting Tesla's market share.

What was Tesla's response to the announcement of higher tariffs on electric vehicles imported from China?

Tesla announced that it would increase the prices of its Model 3 in Europe from July 1, following the EU's imposition of provisional higher tariffs.

How have Wall Street's earnings per share expectations for Tesla changed recently?

Earnings per share expectations for Tesla have worsened, with the 2024 EPS forecast dropping from $254 to $2.39.

Why is Tesla's stock price increasing despite lowered earnings expectations?

Tesla's stock price increase is driven by investor enthusiasm and expectations for future growth in areas like full self-driving, driverless car technology, and robotics, rather than current profits or cash flow.

How does Tesla's stock price movement compare to Nvidia's in terms of market perception?

While Nvidia's stock price increase is based on proven roles in the AI market with expanding revenue, profit, and cash flow, Tesla's increase is based on potential future developments and investor optimism.