Tesla Stock Up 5% to Two-Month High Ahead of Key Events

Tesla’s stock surged 5% on Monday, reaching a two-month high as excitement mounts ahead of several significant events for the electric vehicle giant scheduled for October. Investors are particularly eager for the upcoming announcements, which include key quarterly delivery figures, a highly anticipated robotaxi day, and earnings reports. However, some analysts on Wall Street express skepticism about whether these events, particularly the robotaxi showcase, will meet the lofty expectations of investors.

On Monday, Tesla shares closed at $250, marking their highest closing price since July 22. This rise has helped the stock recover significantly, now trading more than 35% higher than its low of $182 in early August and nearly 80% above its nadir of $139 in April. The increase reflects a growing confidence in Tesla’s ability to rebound from previous declines in delivery numbers earlier this year.

A pivotal factor in Monday’s rally was a report from Barclays analyst Dan Levy. He projected that Tesla will announce third-quarter vehicle deliveries of approximately 470,000, exceeding FactSet’s expectations of around 460,000. This projection is particularly notable as it represents the first year-over-year growth in deliveries for Tesla in 2024, following declines of 9% and 5% in the first and second quarters, respectively. Levy emphasized that a strong delivery figure, set to be released on October 2, could further propel the stock’s upward momentum leading into the robotaxi day event on October 10. This event is considered crucial by analysts who believe that Musk’s focus on autonomous driving is a key reason for investors to maintain their positions in Tesla stock.

In recent communications, Bank of America analyst John Murphy highlighted the potential of the robotaxi day as a “catalyst” for Tesla shares. Similarly, UBS analyst Joseph Spak suggested that the event would serve as a crucial opportunity for Tesla to demonstrate to investors that its current valuation is justified and that there is significant upside potential for the company.

The combination of the upcoming delivery announcement, the robotaxi event, and the earnings report scheduled for October 16 is poised to create a volatile period for Tesla’s stock. Historically, the company’s shares have exhibited significant price fluctuations surrounding both delivery and earnings announcements, reflecting the market’s sensitivity to these reports.

However, not all analysts share an optimistic view. Morgan Stanley analyst Adam Jonas, known for his bullish stance with a price target of $310 for Tesla, expressed concerns about the high expectations surrounding the robotaxi day. In a recent note to clients, he acknowledged that it is difficult to see how the event could meet the optimistic outlook held by many investors. Notably, he anticipates that the October event may not address Tesla’s humanoid “Optimus” robots, which could leave some aspects of investor interest unaddressed.

Originally slated for August, Tesla’s robotaxi day is expected to showcase advancements in its Full Self-Driving technology, along with the introduction of the “cybercab,” a driverless taxi powered by Tesla’s controversial autonomous driving system. The event will take place at Warner Bros. Studios in Burbank, California. Tesla’s strategic shift toward driverless vehicles and artificial intelligence comes at a time when the company is facing challenges with declining profit margins on its core electric vehicle offerings. While Tesla’s stock has recently performed well, it remains approximately 40% lower than its all-time high reached during the pandemic in 2021.

In the backdrop of Tesla’s stock performance, Elon Musk continues to amass considerable wealth, with a reported net worth of $179 billion as of Monday. Musk, who holds 13% of Tesla’s outstanding equity, is now $84 billion wealthier than he was five months ago, reaffirming his status as the world’s richest person. This substantial increase places him over $50 billion ahead of the next richest individual, Amazon founder Jeff Bezos, who has a net worth of $211 billion.

As October approaches, all eyes will be on Tesla as it prepares to unveil critical information about its future trajectory in the electric vehicle and autonomous driving markets. Investors will be watching closely to see if the company can meet or exceed expectations, particularly with its delivery figures and the much-anticipated developments in its robotaxi program. The outcome of these events could have significant implications for Tesla’s stock price and its overall market position in the increasingly competitive landscape of electric vehicles.