The Stock Of Tesla Is Poised To Make Its 11th Consecutive Gain

Tesla Inc.'s stock was poised to extend its winning streak for the 11th consecutive session, driven by favorable reception of its recent charging agreement with rival General Motors Co. 

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Shares of Tesla rose by 4% in premarket trading on Friday after the announcement that GM vehicle owners would gain access to Tesla's network of 12,000 "Superchargers" in North America. This agreement mirrored a similar one previously made between Tesla and Ford Motor Co.

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Wedbush analyst Daniel Ives commended Tesla's strategic move, noting that the company is strategically outmaneuvering its competitors. 

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In response to this development, Ives increased his price target on Tesla's stock from $215 to $300 and included the company in Wedbush's "best ideas list." According to Ives, Tesla's willingness to allow competitors onto its network presents a significant monetization opportunity, contributing to the company's growing valuation based on its various business segments, including its energy division and established electric vehicle (EV) production capabilities. 

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Ives estimated that Ford and GM combined could generate an additional $3 billion in EV charging revenue for Tesla over the next few years.

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Tesla's stock was on track to achieve its longest winning streak since January 8, 2021, with 11 consecutive trading session gains. The stock has risen by 27.4% during this streak. 

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Ives highlighted the mutually beneficial nature of the agreement, stating that it made strategic sense for GM as the company is positioning itself for a successful EV transformation in the coming decade. GM's stock also experienced a premarket increase of over 3% on Friday.

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Looking ahead, Ives identified further positive developments for Tesla, predicting that the company is on track to meet its delivery target of 1.8 million units this year. He also noted that Tesla's margin story is expected to trough over the next 1-2 quarters before recovering into fiscal 2024. Additionally, the company's Nevada battery production and the upcoming launch of the Cybertruck were identified as potential strategic advantages that could drive further growth.

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