Late Wednesday morning,
(ticker: TSLA) shares were at $1,029.60, up $35.62 or 3.6%. The
Dow Jones Industrial Average
were down about 0.4% and 0.6%, respectively.
If the gain lasts, this would mark Tesla stock’s highest closing level since Jan. 18, when it closed at $1,030.51, according to Dow Jones Market Data. The seven-day rally, for a gain of 34.4%, is the longest winning streak since the seven sessions ended Aug. 5. And the gain is the best for a stretch of that length since the stock rose 35.2% in the seven days ended Nov. 1.
Shares are up 18.3% so far in March, putting Tesla stock on pace for the best month since October 2021. Shares rose almost 44% back then.
There isn’t much news to pin Wednesday’s gains on. Wall Street analysts don’t seem to be playing a role. A few firms have changed their price targets for the stock, but there has been nothing striking. And the average call on the price has fallen by roughly $4 over the past week to about $939 a share.
Interest rates aren’t helping either. The yield on the U.S. 10-year Treasury note is up about 0.2 percentage point over the past week. Higher rates hurt richly valued growth stocks such as Tesla more than others because the bulk of those companies’ profits are expected to roll in years from now. When rates rise, the discounted current value of those future earnings falls.
The move seems to be a carry-over from events earlier in the week. Tesla opened its Germany manufacturing facility Tuesday. And before that, CEO Elon Musk tweeted about his “Master Plan 3,” which would follow plans written in 2006 and 2016. The third iteration will include comments about scaling Tesla to “extreme size,” according to the CEO.
Tesla is expected to delivery about 1.5 million units in 2022, up from 936,000 in 2021. The company wants to increase its production and sales volumes at 50% a year on average for the foreseeable future.
Investors might also be feeling upbeat about the outlook for Tesla’s first-quarter delivery numbers. That data is due to be reported around April 2. Wall Street currently projects Tesla will deliver about 322,000 vehicles, up from 306,000 delivered in the fourth quarter of 2022.
Write to Al Root at firstname.lastname@example.org