Why Tesla Kept Rallying Today

Tesla (NASDAQ: TSLA) shares have closed higher for six straight days, and a seventh looks likely after today’s market closes. The rally has boosted shares of the electric vehicle (EV) leader by almost 40% in just the last month. Shares were higher again today by 6% as of 12:05 p.m. ET.

The most recent surge comes after Tesla reported relatively strong vehicle delivery results from the second quarter yesterday. That led to widely followed Wedbush analyst Dan Ives lifting his already lofty price target on the stock to near a Wall Street high among analysts following the company. Ives bumped his price target from $275 to $300 per share today. That would represent a gain of another 30% from yesterday’s closing price.

EV demand is starting to look healthy again

Tesla delivered nearly 444,000 electric vehicles (EVs) in the second quarter. While that was a 4.8% decline compared to the prior-year period, it was higher than many analysts expected. And Ives thinks it’s just the start of an acceleration in EV sales for Tesla. In his report today, Ives wrote:

The optimism for Tesla stock isn’t just about EVs, either. The company reported record deployments of its energy storage products. Its 9.4 GWh (gigawatt hours) of energy storage products deployed outpaced the previous record in the prior quarter by 129%.

That could help boost earnings and sales when the company reports its full second-quarter results on July 23. Investors are also looking forward to a potential catalyst from Tesla’s robotaxi update coming on Aug. 8. Investors seem to want to be in the stock ahead of those updates.

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Howard Smith has positions in Tesla. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.

Why Tesla Kept Rallying Today was originally published by The Motley Fool