Tesla Caps 43% Rally in Longest Advance Since Early February
Tesla Inc. rose for a sixth straight session, capping a 43% gain triggered by the the electric-car maker’s April 2 first-quarter delivery report.
The six-day run was Tesla’s longest winning streak since early February. The S&P 500 Index rose 9.3% during the same period.
“Coming off its recent first-quarter delivery numbers, which were better than reset Street expectations, there is some clear optimism from the bulls,” Wedbush analyst Dan Ives wrote to clients. China production and demand appear poised for a significant rebound and should be a key growth driver over the coming quarter, he said.
Even so, it is now a “virtual impossibility” that Tesla will be able to reach its original annual delivery forecast of at least 500,000 units, according to Ives. Bullish investors are also looking past the shutdown of the company’s factory in Fremont, California, which could last at least another month, further complicating the delivery trajectory for the coming quarters, he said.
After the coronavirus-related market gyrations that led to as much as a 61% drop in Tesla from a record high on Feb. 19, the stock has been steadily advancing and is currently back to the levels it was trading at around mid-March.
Tesla’s 14% rally on Monday also pushed the shares above their 50-day moving average price for the first time since early March.