On Wednesday, $Tesla Motors(TSLA)$ ’s stock surged, but investors seem cautious and are awaiting major developments and news.
Tesla led the S&P 500 with the largest gains. Earlier, Elon Musk tweeted a message that may have boosted the stock. He wrote: "Just leaving Tesla engineering offices in Palo Alto. Mostly good, some bad. The future is going to be wild. There will be so many robots …"
Tesla is working on AI training robots, which could be used both internally and sold externally. Musk believes the robot business could one day rival the company’s automotive segment.
In the past four trading days, Tesla's stock rose on three of them. However, it’s worth noting that the stock fell on three out of the previous four days, so recent gains are likely a rebound from earlier declines.
Musk’s tweet didn’t offer any new information. While Wednesday’s gains are a positive sign, they don’t resolve the recent volatility. Investors seem to be waiting for new catalysts to break Tesla out of its recent trading range.
Three Positive Events
Three key events could impact the stock going forward:
Q3 delivery numbers (expected October 2)
the Robotaxi launch event (scheduled for October 10)
Q3 earnings report a few weeks after the event.
Wall Street anticipates Tesla will deliver 460,000 units in Q3, up from 435,000 units in the same period last year. This growth would be positive news, especially given that the company delivered around 831,000 units in the first half of the year, a roughly 7% drop year-over-year.
Investors are eager to see a real autonomous taxi at the Robotaxi event and learn about the rollout of the autonomous driving service.
Lastly, if Q3 earnings exceed expectations and margins improve, it would be a positive development. Wall Street expects an operating margin of around 8% for Q3, up from 5.5% in Q2.
As of pre-market Wednesday, Tesla’s stock is down about 15% this year and is roughly 49% below its all-time closing high of $409.97 from November 4, 2021. This drop has impacted investor sentiment for 2024. Despite this, the stock has risen nearly 50% from its 52-week closing low of $142.05 on April 22.
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