Key points
The stock price of Tesla (Symbol: TSLA) has experienced a remarkable comeback, rebounding from a significant loss earlier in the year. After facing a 40% decline from January to late April, Tesla has almost fully recovered, now just 0.8% down for the year.
Market analysts speculate that this resurgence is primarily driven by market optimism and strong quarterly performance, despite the company not exceeding expectations dramatically.
The image above shows the Tesla rebound, as observed on the VT Markets app.
Over the past few months, Tesla shares have soared by 75%, translating to an addition of over $300 billion to its market capitalisation. The recent second-quarter delivery figures have been a major catalyst for this upward trend.
Tesla reported 443,956 deliveries, surpassing the expectations of Wall Street and triggering a two-day rally that saw the stock gain roughly 17%.
The surge in stock price of Tesla has also propelled Elon Musk back to the top of the Bloomberg Billionaires Index. With his net worth now standing at $252 billion, Musk has surpassed Jeff Bezos, whose net worth is $219 billion. Musk’s wealth increased by about $11 billion in a single day following the announcement of the delivery figures.
The recent strong performance from Tesla allows for momentum trading by identifying breakout points above recent highs to capitalise on the uptrend. Staying informed about news related to Tesla, such as quarterly reports, production updates, and announcements from CEO Elon Musk, can present profitable trading opportunities, as the stock tends to have sharp reactions to news.
As always, it is crucial for day traders to employ stringent risk management practices to mitigate potential losses, given the inherent volatility and rapid price movements of Tesla.
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