Insights

Why Tesla Shares Moved Higher Friday

What happened

Shares of Tesla (NASDAQ: TSLA) popped almost 3% at the open Friday. The stock gave back those gains, and was trading at nearly break-even as of 12:30 p.m. ET. But the reason for the early gains could bode well for further moves higher. 

So what

Tesla stock has been under pressure the past few months, dropping nearly 40% over that time. Much of the angst stemmed from uncertainty caused by supply chain disruptions and suspended operations in its Shanghai manufacturing plant. Those production delays were caused by government-imposed shutdowns to prevent the spread of COVID-19. But news out of the Chinese electric vehicle (EV) sector today may signal good news ahead for Tesla.

Chinese EV makers Nio, XPeng, and Li Auto reported their June delivery data this morning, showing they all recovered nicely from the headwinds. After analysts slashed expectations for Tesla’s second-quarter deliveries, this may set the company up to outperform. 

Now what

Nio’s June deliveries exceeded the upper end of the estimate it provided on June 9 when it provided an update with first-quarter earnings. And the three Chinese EV companies combined for the highest monthly level of deliveries ever in June. 

The June rebound from the Chinese automakers bodes well for Tesla, too. Analysts have slashed second-quarter delivery estimates mainly due to the production impacts in Shanghai. Some now predict Tesla will ship just 250,000 vehicles in the second quarter after it reported a record 310,000 in first-quarter deliveries.

Investors will be most interested to hear if the company believes it remains on track to increase deliveries 50% in 2022 versus last year. If the impact from delays at the Shanghai plant are muted from a strong June recovery, that projection may still be achievable. Today’s news out of China has investors believing that might be the case. 

Howard Smith has positions in Nio Inc. and XPeng Inc. The Motley Fool has positions in and recommends Nio Inc. and Tesla. The Motley Fool has a disclosure policy.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Rebate Rewards

Level 2 Rebate

Deposit $2,000 and get $200 Rebate
$ 200 Rebate
  • 3 Simple Steps
  • 1. Register Using The Link Below (Promo-Code: WEBREBATE)
  • 2. Deposit $2,000 and place one trade at any non-Austalian market within 30 calendar days
  • 3. Receive Your $200 Rebate
Popular

Level 1 Rebate

Deposit $1,000 and get $100 Rebate
$ 100 Rebate
  • 3 Simple Steps
  • 1. Register Using The Link Below (Promo-Code: WEBREBATE)
  • 2. Deposit $1,000 and place one trade at any non-Austalian market within 30 calendar days
  • 3. Receive Your $100 Rebate

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex Securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

EASY QUALIFICATION & LOW ENTRY
NEW CLIENT REBATE OFFER
EARN UP TO $200 CASH REBATE
Act Fast - Promotion Ends In
Click Here To Get Started
EASY QUALIFICATION & LOW ENTRY
NEW CLIENT REBATE OFFER
EARN UP TO $200 CASH REBATE
Act Fast - Promotion Ends In
Click Here For More Info