After the collapse of Tesla shares in recent sessions, what could a new surge in price really mean? The answer may surprise you.
While Tesla faces near-term challenges related to production and competition, strong fundamentals and potential political opportunities could lead to significant stock appreciation over the long term.
How could, for example, Trump’s re-election in the US presidential elections impact the price of Tesla shares? The answer might surprise you.
What happened to TSLA stock in the last few weeks?
In recent weeks, Tesla (TSLA) stock has seen high volatility. In early July, shares increased significantly thanks to a second-quarter vehicle deliveries report that exceeded analysts’ expectations. Tesla delivered about 444,000 vehicles, beating forecasts of 439,000, though down from 470,000 in the second quarter of 2023.
However, on July 7, Elon Musk announced a delay in the release of the robotaxi project, which was initially scheduled for August and postponed to October. This announcement caused a notable sell-off, with stocks shedding some of their recent gains.
How have Tesla’s fundamentals changed?
On the fundamental front, Tesla continued to show solid growth. In 2023, the company reported revenues of $96.77 billion, an increase of 18.8% from the previous year, and earnings of $15 billion, an increase of 19.4%.
For the second quarter of 2024, analysts expect stable earnings despite the decline in deliveries compared to the previous year. Expectations are for profits that reflect efficient cost management and an improvement in profit margins, thanks to economies of scale and growth in sales of high-margin products such as autonomous driving software. Tesla will report second-quarter financial results on July 23, 2024.
What could be the real reason behind the possible appreciation of TSLA shares?
Recently, Elon Musk attracted media attention with a statement on X (formerly Twitter), where he expressed his full support for Donald Trump in the upcoming presidential election. This endorsement has raised some concerns, as a Trump presidency could lead to policies that favor internal combustion vehicles and potentially reduce demand for electric vehicles due to lower oil prices.
However, Musk’s endorsement could mean something different for Tesla. During Trump’s previous term, deregulatory policies and corporate tax breaks benefited technology and innovation companies like Tesla. Additionally, Musk may see Trump as an opportunity to influence policies that favor the development of electric vehicle infrastructure and advanced technologies such as artificial intelligence and robotaxis.
Original article published on Money.it Italy 2024-07-18 12:55:00. Original title: Azioni Tesla: questi fattori faranno esplodere (di nuovo) il prezzo
