Al Root
Tesla stock was falling to start Wednesday trading. That isn't a surprise given recent moves.
Shares of the electric-vehicle maker were down 1% at $223.95 while S&P 500 and Dow Jones Industrial Average futures were down 0.3% and 0.4%, respectively.
The stock feels stuck. Coming into Wednesday trading, Tesla shares are sitting on a gain of more than 7% over Monday and Tuesday. Shares had dropped 8.4% on Friday, erasing a 7.5% surge from Monday through Thursday.
Recent earnings from peers such as Li Auto, and new ratings, such as a Buy from Deutsche Bank's Edison Yu, have moved Tesla stock, but the shares have been volatile and range-bound for weeks.
"Until it gets under $200 or, convincingly above $250, it is much ado about nothing," says 22V Research senior managing director John Roque. Investors, for now, are content with Tesla's valuation, waiting for something to break for the better or worse before changing that view.
"Said differently, there are easier ways to get gray hair" than trading a range-bound Tesla stock, added Roque.
Third-quarter deliveries and Tesla's Robotaxi event slated for Oct. 10 could be two catalysts to change minds.
For the third quarter, Wall Street projects about 460,000 car sales, up about 6% year over year, according to FactSet. At Tesla's Robotaxi event, investors expect the company to demonstrate its self-driving car technology and outline plans to start a self-driving cab service in the coming quarters.
Through Tuesday's close, Tesla stock was down about 9% year to date. Falling EV sales have weighed on investor sentiment. In the first half of the year, Tesla delivered some 831,000 cars, down about 7% compared with the same span of 2023.
Write to Al Root at allen.root@dowjones.com
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(END) Dow Jones Newswires
September 11, 2024 07:33 ET (11:33 GMT)
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