Tesla's stock (TSLA) extended its rally to nine consecutive days Monday, eking out a 0.5% gain.
The stock's winning streak has erased year-to-date losses in a remarkably quick turnaround. Shares have risen more than 75% since the 52-week lows hit in April.
The extended rally comes as the car manufacturer beat on quarterly deliveries last week. Aside from production and delivery results, Tesla bulls have also highlighted the company’s fastest-growing segment — its energy storage business.
Smaller electric vehicle makers also reported better-than-expected deliveries last quarter.
On Monday, Lucid (LCID) shares jumped almost 7% after the luxury EV startup topped production and delivery expectations for the second quarter. Chinese competitors Li Auto (LI), Nio (NIO), and XPeng (XPEV) also recently reported better-than-expected quarterly deliveries.
Tesla slumped in the first half of 2024 amid tough competition abroad and some waning demand for EVs in the US. In an effort to reduce costs, the company embarked on a plan to cut more than 10% of its global staff earlier this year in what some analysts saw as a signal of tough times ahead.
Tesla also slashed prices last year to spur sales and better compete with its Chinese peers.
"There is still the risk of further price cuts ahead, and there [are] still further questions on fundamentals, we are still facing somewhat of an EV winter on demand," Barclays senior equity research analyst Dan Levy told Yahoo Finance last week. "So, good result. But I think the fundamental macro backdrop is still the same."
Levy has an Equal Weight rating on the stock and a $180 price target, which implies a near-30% drop from current levels.
The carmaker will report its quarterly results on July 23 after the market close. Analysts are also looking ahead to Aug. 8, when the company is set to unveil its much-anticipated robotaxi.
"The key for Tesla's stock is the Street recognizing that Tesla is the most undervalued AI play in the market," Wedbush managing director Dan Ives wrote in a note this week as he raised his price target on the stock to $300 from $275 with a new bull case of $400 for 2025.
Ives added the company's robotaxi event on Aug. 8 "will lay the yellow brick road to [full self-driving] and an autonomous future."
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.
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