By
Godfrey Benjamin
April 23rd, 2024
Tesla (TSLA) stock price has risen in the last trading session. This comes as the sales report indicates a rise in sales despite the COVID-19 situation. China seems to hold the key.
Tesla Inc (NASDAQ: TSLA) stock price has risen significantly lately. Many within the investment community think that this is as a result of the recent report. The report showed an uptick in positive numbers.
On Friday, Tesla (TSLA) stock price was $753.89 (+1.16%), after hours it lost 0.31%. Such a level price indicates that within this trading week TSLA stock jumped more than 20%.
Another interesting feature of the sales report was an increase in Tesla’s China sales. This could mean many things for the Electric Vehicle maker.
Tesla (TSLA) Stock Price Rises as Well as Car Sales
Sources say that Tesla made the delivery of about 88,400 cars in Q1. This statistic is a little lower than in the same period a year ago. It also beats the industry forecast of 78,100.
The 21% rise in sales indicates a boost. This boost could be the setting of a new trend. That can only be confirmed if the trend continues this way for three other quarters.
Tesla has managed to turn around its declining fate. Many investors had grown weary of the promises that the unconventional Eon Musk had been making.
So much so that his promises had started sounding like the claims of a snake oil salesman to some. The new numbers though, present the kind of change that others have been waiting for.
Many analysts believe that the Tesla (TSLA) stock is a buy at this time. The reason for this is that the company seems set to dominate the electric vehicle market. The electric vehicle maker is set to create a new and exciting industry that may become the new normal before the end of the decade.
Gasoline prices are going up. Inflation is producing high premiums on gasoline engine ownerships. This is helping car owners to shift from gasoline engines to at least hybrid cars or at best the fully electric vehicles.
Tesla itself doesn’t have a competitor with the kind of strategic advantage it possesses. Its home-grown tech is just the kind of knowledge base needed to compete in an industry that feeds on innovation.
Its stock prices are already showing promise. At around the $750-$770 range, Tesla’s stock prices are back to their February levels. That month was also the month when much-needed funds were raised.
Chinese Market Could Be Key
It also shows that the Chinese market is one market that every manufacturer must take note of. The Country of 1.3 billion people has made a significant recovery after the COVID-19 fallout. Other technology giants such as Apple Inc (NASDAQ: AAPL) have reopened their retail shops in China. About 2.5 million units were also shipped in March.
Signs that there are rising sales from China show that now is the time for Elon’s team to focus on how to sell as many Chinese as possible.
It also means that the new Model Y might be the gamechanger that the EV maker needs. Then again it could also be its Achilles heel. Only time will tell.