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Tesla Shares Jump 6% Ahead Of Delivery Data—Adding $45 Billion To Market Cap

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6 months ago

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Tesla Shares Jump 6% Ahead Of Delivery Data—Adding Billion To Market Cap

Topline

Shares of Tesla rose by 6% through Monday afternoon, before it’s expected to report a decline in deliveries for the second-straight quarter, though analysts said they remain optimistic for Elon Musk’s company.

Key Facts

Tesla’s shares increased to over $211 as of around 3:35 p.m., adding about $45 billion to the company’s market cap.

The electric vehicle maker’s stock has rallied nearly 16% over the last five days of trading and 34% since Tesla’s share price fell below $140 on April 22.

Tesla is expected to report about 436,000 vehicle deliveries for a three-month period ending June 30, a 6.4% decrease year-over-year, according to a compilation of analyst estimates by FactSet.

Despite the declining 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 Monday, though it remains cautious and noted it expected “disappointing fundamentals” for the company.

Colin Langan, Wells Fargo’s lead analyst, said Tesla faces declining delivery growth because of declining demand for the company’s vehicles, adding “few levers remain” to increase growth other than reducing prices.

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Forbes Valuation

Tesla’s chief executive Elon Musk is the richest person in the world with an estimated net worth of $228. billion. Musk, who owns roughly 12% of Tesla, added about $7 billion to his net worth Monday.

Key Background

Tesla reported a 48% decline in first-quarter profits year-over-year, in addition to a 9% drop in revenue and roughly 70,000 fewer vehicles delivered than expected. That was Tesla’s first negative quarterly delivery growth since 2020. A decline in deliveries was “partially” caused by supply chain issues, Tesla said at the time, including an arson attack 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 deliveries, including BYD, which reported a 21% increase in sales through its second quarter.

Further Reading

ForbesTesla Reports First Negative Quarterly Delivery Growth Since 2020By Derek Saul

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