Tesla shares $TSLA are up nearly 25% for the week, approaching $290, even as the company's results and technology momentum lag.
Reasons for the rise:
Market psychology: Investors, especially retail investors, believe the stock around $220 was "cheap enough" even though the P/E ratio is extremely high (~156).
Return of Musk: Ironically, the poor results are raising expectations that Elon Musk will reduce his government activities and focus more on Tesla, which the market perceives positively.
Challenges for Tesla:
Worst quarterly sales since late 2020.
Strength of Chinese competition: companies like BYD and CATL are developing batteries with faster charging and longer range than $TSLA.
A community member's personal view, not investment advice. Community Guidelines
BC
Fine by me and I hope it continues. I guess we're all waiting for Robotaxi now😂
CB
Well the initial expectation that Musk's collaboration with Trump and America First would lead to prosperity (the market was soaring thanks to today's naive retail expectations) was severely disappointed. Now Musk has one chance to confirm his reputation as a technical genius? The question for all the money. He doesn't have much time left.
In general, the biggest lesson for me is that the old Oracle of Omaha, who I suspected of being clueless, has figured it out again with his cash hoarding 🏄