Al Root
Tesla stock rose early Friday and was on track to close out another incredible week with a gain as investors bet that Tesla's investments in self-driving cars are about to bear fruit.
Shares of the electric-vehicle maker were up 1.1%, while S&P 500 and Dow Jones Industrial Average futures were up 0.2% and 0.3%, respectively.
The early rise comes despite quarterly disclosures showing Daniel Loeb's Third Point Investors exited a 500,000-share Tesla stake during the March quarter. It also exited a 670,000-share Meta Platforms stake while buying 1.45 million shares of Nvidia, among other shifts.
Investors like to follow what large, successful fund managers are doing but changes don't always move stocks significantly. What's more, the filing reflects holdings as of the end of March, meaning portfolios could have shifted again since then.
Coming into Friday, Tesla shares have risen almost 15% for the week, almost certainly ensuring a fourth consecutive weekly gain. The streak started with an 18% jump the week Tesla reported first-quarter earnings. Numbers were weaker than expected but the company stuck to its timelines for a lower-priced model and for a robotaxi service. The latter is due to start in Austin, Texas, in June.
Easing trade tensions between China and the U.S., which boosted most shares, also helped, pointed out Deepwater Asset Management managing partner Gene Munster in a recent tweet.
"Ride-hailing is a massive opportunity," he wrote. "This year in the U.S., Uber and Lyft are expected to generate about $90 billion in gross bookings across roughly four billion rides ... Tesla is projected to generate approximately $100 billion in total revenue this year. In other words, ride-hailing could materially move the needle."
That's what investors are betting on.
Write to Al Root at allen.root@dowjones.com
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(END) Dow Jones Newswires
May 16, 2025 07:29 ET (11:29 GMT)
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