The carmaker’s ability to bounce back in the face of challenges on the stock market has been extraordinary. It has turned around an abysmal opening to the year. The company’s worst quarterly performance since 2022. Its stock has more than doubled, soaring 85% since hitting a low of $221.86 on April 4. At the close of trading on Monday, TSLA’s stock reached $410.26, a 3.6% jump for the day. This price had exceeded its full 2024 closing price by over $6.
The negative impacts
As we mentioned, the first quarter of 2024 was challenging for Tesla. The stock dropped 29% in a short three-month stretch. This downturn seems to have created the conditions for a remarkable rebound. Tesla’s MegaBlocks battery energy storage systems are being credited by analysts for at least a portion of this rebound. These systems arrive completely preassembled and allow businesses to significantly reduce power expenses while increasing the utilization of renewable energies.
In addition to his company’s ambitious plans for the new robots, Elon Musk, CEO of Tesla, has been selling a bill of goods about the technology. He imagines these intelligent devices doing everything from factory jobs to child care. Cutting-edge industry experts are giddy with anticipation over these innovations. They warn the robots won’t be commercially available for a while.
Just last week Musk was in the news for buying roughly $1 billion of Tesla shares through his family foundation. This huge commitment deepens that well of confidence among investors. This acquisition has created a new wave of optimism among analysts and investors. They view it as the best possible signal that others have confidence in the company’s future.
Analysts are thrilled about a newfangled pay-per-mile plan which would bring in a whopping $1 trillion more for him over the next 10 years. This proposed compensation package has received much of the fanfare and is considered one of the main reasons leading Tesla’s current rally.
Tesla’s stock price has skyrocketed this year, adding to what is now a two-year bull run. This rebound comes after a lackluster first quarter showing. So far as it stands, Tesla is on track to finish 2024 with an impressive net increase of 63%. As evidenced by the company’s current stock trajectory, the company is maturing, recovering from a crisis, and thriving. That underscores its critical place in the growing electric vehicle and renewable energy industries.