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- 📈 $TSLA: Soars 27% in a Week - What's Next?
📈 $TSLA: Soars 27% in a Week - What's Next?
Tesla's 27% weekly surge, Q2 delivery beat, and upcoming Robotaxi Day showcase its EV dominance and AI ambitions. 📈🚗🤖
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TSLA: TSLA $252.94
This week, we're putting the spotlight on Tesla, the electric vehicle giant that's been making waves in the market.
After a rocky start to the year, Tesla's stock has surged an impressive 27% in just one week, erasing its year-to-date losses and leaving investors wondering: Is this the beginning of a sustained rally, or just a temporary boost?
Tesla's AI Ambitions
Tesla is doubling down on its artificial intelligence (AI) initiatives, positioning itself as more than just an automaker. CEO Elon Musk has stated, "We should be thought of as an AI or robotics company," highlighting the company's focus on autonomous driving and other AI-driven technologies. The company is set to host its much-anticipated "Robotaxi Day" on August 8, where it's expected to unveil its autonomous taxi prototype. This event could be a significant catalyst for the stock, potentially laying out Tesla's roadmap for full self-driving capabilities and an autonomous future. Additional Reading |  |
Q2 Deliveries Beat Expectations
Tesla delivered 443,956 vehicles in Q2, surpassing average analyst estimates of 439,000. While this represents a 4.8% year-over-year decline, it's a 14% increase from Q1, suggesting a potential turnaround in demand. The Model 3 and Model Y continue to be the stars of the show, accounting for 422,405 of the quarter's deliveries. The remaining 21,551 deliveries were spread across the Model S, Model X, and the much-hyped Cybertruck. Importantly, Tesla delivered more cars than it produced in Q2, potentially indicating a reduction in inventory levels - a positive sign for the company's supply chain management and demand outlook. Additional Reading |  |
Global Expansion and Challenges
Tesla continues to expand its global footprint, but not without facing some hurdles. The company's vehicles have been added to a Chinese government purchase list for the first time, potentially opening up a new market segment in the world's largest EV market. However, Tesla is also grappling with increased competition, particularly from Chinese rivals like BYD. In Europe, the EU has imposed additional tariffs of up to 38.1% on Chinese-made EVs, which could impact Tesla's exports from its Shanghai factory. The company is also facing challenges in ramping up production of its Cybertruck, with reports of quality issues and low volume production. Despite these hurdles, Tesla remains committed to expanding its product line, with plans for "affordable vehicles" potentially hitting the market in early 2025. Additional Reading |  |
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Major Market News
Source: DALL-E
Tuesday, July 9th - Fed Chairman Powell testimony to Senate
What: Federal Reserve Chairman Jerome Powell will testify before the Senate, likely discussing the current state of the economy, monetary policy, and the Fed's outlook.
Impact: Powell's testimony can significantly influence market expectations regarding future interest rate decisions and the Fed's stance on inflation and economic growth. His words are closely watched for hints about potential policy changes.
Source: Federal Reserve
Thursday, July 11th - Consumer Price Index (CPI)
What: The CPI measures the average change in prices over time that consumers pay for a basket of goods and services. It's a key indicator of inflation.
Impact: With a forecast of 0.1% month-over-month increase and 3.1% year-over-year, this report will be crucial in assessing inflation trends. The data could influence the Fed's decisions on interest rates and monetary policy.
Source: Bureau of Labor Statistics
Thursday, July 11th - Initial Jobless Claims
What: This weekly report shows the number of individuals who filed for unemployment insurance for the first time.
Impact: With 240,000 new claims expected, slightly up from the previous 238,000, this report provides insight into the job market's health. Consistent low numbers indicate a strong labor market, while increases may signal economic challenges.
Source: Department of Labor
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A note that Underwriter and this newsletter is not investing or trading advice. These are stocks and information we find interesting. Please consult with a financial professional. By reading, you agree to not take this as financial advice and assume all risk. Futures, stocks, bonds trading of any kind involves a lot of risk. No guarantee of profit is made. In fact, you may lose your entire investment. We guarantee no profit whatsoever, You assume the entire cost and risk of any trading or investing activities you choose to undertake. You are solely responsible for making your own investment decisions. Owners/authors of this newsletter, its representatives, its principals, its moderators and its members, are NOT registered as securities broker-dealers or investment advisors either with the U.S. Securities and Exchange Commission, CFTC or with any other securities/regulatory authority. Consult with a registered investment advisor, broker-dealer, and/or financial advisor. Reading and using this newsletter or any of my publications, you are agreeing to these terms. Any screenshots used here are the courtesy of Underwriter. The data, quotes and information used in this blog is from publicly available sources and could be outdated or outright wrong - I do not guarantee accuracy of this information.