The Stock of Tesla Has Surged Once Again, and It's Not Because It's Selling Evs

Tesla Inc. shares surged on Monday, recovering from last week’s selloff triggered by news of a delay in the company's Robotaxi Day event.

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Tesla’s stock, which trades under the ticker TSLA, climbed $15.65, or 6.3%, in morning trading, building on Friday’s gain of $7.20, or 3%. This marks the stock’s 13th gain in the past 14 sessions, reaching the highest closing price since September 19, 2023.

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Last Thursday, Tesla shares had plummeted $22.23, or 8.4%, after Bloomberg reported that the anticipated robotaxi unveiling scheduled for August 8 would be postponed by two months.

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The event was highly anticipated on Wall Street, expected to signify Tesla's transition from an electric vehicle (EV) manufacturer to a more profitable robotaxi company, while also showcasing its full self-driving technology ambitions.

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Adding to Thursday’s selloff was a report from Cox Automotive indicating that Tesla’s share of total EV sales fell below 50% for the first time.

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However, with Monday’s recovery, Tesla’s stock was trading 0.2% above its closing price before Thursday’s decline.

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Over the weekend, Tesla CEO Elon Musk made headlines by endorsing Donald Trump for president on his social media platform X. This endorsement came just before the Republican National Convention began on Monday and as Trump's chances of winning the November election increased following recent events.

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There are concerns that a Trump presidency might lead to lower oil prices, and his support for internal combustion engine vehicles could reduce demand for EVs. The Republican platform released last week includes a pledge to cancel EV policies implemented by President Biden. Musk’s endorsement of Trump might ease some of these concerns.

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Additionally, Tesla’s stock received a boost from Susquehanna Financial analyst Biju Perincheril. In a Monday research note, Perincheril mentioned that the deployment of Tesla’s Powerwall 3 home battery is growing as equipment availability increases. He expects the Powerwall 3 to make significant inroads in markets like California, where it offers versatility for installers.

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Last week, Tesla’s stock had dipped 1.3%, ending a four-week winning streak, which was the longest of 2024. Over the past three months, the stock has surged 63.4% and has gained 6.2% year to date. In comparison, the S&P 500 index (SPX) has increased 11.7% over the past three months and rallied 18.5% this year.

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