The main line
Shares of Tesla rose 6% by Monday afternoon, before it is expected to report a drop in deliveries for the second quarter in a row, although analysts said they remained bullish on Elon Musk’s company.
Analysts remained bullish on the electric vehicle maker despite an expected decline … [+]
Key facts
Tesla shares rose to over $211 around 3:35 p.m., adding about $45 billion to the company’s market cap.
Shares of the electric vehicle maker are up nearly 16% over the past five trading days and 34% since Tesla’s share price dipped below $140 on April 22.
Tesla is expected to report about 436,000 vehicle deliveries for the three-month period ending June 30, a 6.4% year-over-year decline, according to a compilation of analyst estimates by FactSet.
Despite the drop in delivery data, Wells Fargo added Tesla to a list of companies with a positive outlook for the third quarter, the bank said in a note on Monday, although it remained cautious and noted that it expected “disappointing fundamentals” for the company .
Colin Langan, chief analyst at Wells Fargo, said Tesla faces declining supply growth due to falling demand for the company’s vehicles, adding that there are “few levers left” to boost growth other than lowering prices.
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Forbes Rating
Tesla CEO Elon Musk is the richest person in the world with a net worth of $228. trillion Musk, who owns roughly 12% of Tesla, added about $7 billion to his net worth on Monday.
Key background
Tesla reported a 48% year-over-year drop in first-quarter earnings, in addition to a 9% drop in revenue and roughly 70,000 fewer vehicles delivered than expected. It was Tesla’s first negative quarterly delivery growth since 2020. A drop in deliveries was caused “in part” by supply chain issues, Tesla said at the time, including a fire at its Berlin factory in February . Tesla also faces increased competition for electric vehicle sales in China, where several automakers reported significant increases in sales and shipments, including BYD, which reported a 21% increase in sales during its second quarter.
Further reading
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