Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Tesla Rallies 40% in One Week as Investors Can't Get Enough

Stock MarketsAug 18, 2020 01:20PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Christiana Sciaudone

Investing.com -- Tesla (NASDAQ:TSLA) has rallied almost 40% over the past week. Why? It's 2020, why not?

To be fair, Tesla said a week ago that its board of directors had approved a five-for-one stock split to make ownership more accessible -- that goes into effect Aug. 31.

But going back farther, shares of the electric car maker have more than quadrupled for the year, and are up more than 3% on Tuesday.

While investors seem like they can't get enough, most analysts appear to be more cautious. Just four analysts have a buy rating on Tesla shares, while 13 say hold and 11 say sell. The average price target of $1,242.69 is about 16% lower than the current trading level.

On the face of it, recent news hasn't been much to celebrate. Tesla's new-car registrations in China fell month-over-month in July, with 11,456 vehicles registered in July, compared to 15,000 in June, according to Bloomberg.

But it's notable that the numbers have not been coming in with regularity this year: Registrations in China totaled more than 12,000 in March; 5,000 in April; and 11,000 in May. On top of that, the electric vehicle market in China is expected to see a compound annual growth rate of more than 30% from 2020 to 2028, according to Research Nester.

Wedbush analyst Dan Ives sees demand in China accelerating already in July and August, Barron's reported. In the third quarter, Tesla "has seen strong demand in Europe and China with the U.S. market remaining softer," Ives said in a report on Monday.

There's plenty of competition, though, from old and new rivals. Canoo is the most recent company to go public. Canoo will use a membership model to sell its electric vehicles and will go public after it merges with Hennessy Capital Acquisition Corp IV Class A (NASDAQ:HCAC), a “blank-check” special purpose acquisition company created to finance a merger that often leads to an IPO, CNBC reported. Canoo will list with Nasdaq under the ticker CNOO. That will make it the fourth EV company to go public via a SPAC since March.

SoftBank may also have given the stock a boost when its new asset management unit reported a $123 million stake in Tesla, according to an SEC filing published Monday.

Tesla Rallies 40% in One Week as Investors Can't Get Enough
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (6)
Michael Angelo
Michael Angelo Aug 18, 2020 7:16PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Like it or not they're is something fishy supporting the move. Could be investigated but won't because this is a C. I. R. C. U. S. And sorry, but I think also that Elon knows and is behind it. Started a few years ago.
미우 한
미우 한 Aug 18, 2020 4:36PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Never challenge against FED and a crazy genius to be successful in investing. Don't regard people who buy Tesla shares as fools.  Current Tesla's stock price has a reason for that.
eddie glass
eddie glass Aug 18, 2020 3:25PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
such a sick market. all this funny money just hyper-inflating the valuations of a few companies. meanwhile small businesses forced to stay closed and destroyed. can walk into an over crowded Walmart, but they are keeping small businesses closed from even 1 customer.
Jimmy Kim
Jimmy Kim Aug 18, 2020 2:58PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Fed is responsible for this
Big Al
Big Al Aug 18, 2020 2:55PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
bubblicious
znao sam
znao sam Aug 18, 2020 2:53PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
This ballon will *****up
Viking Prank
Viking Prank Aug 18, 2020 2:53PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
the question is when. if its in 2 years, plenty of money to be made until then
Eloy Rodrigo
Eloy Rodrigo Aug 18, 2020 2:53PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Viking Prank maybe it pops after election
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email