Tesla’s Strong Week
Tesla shares surged 2.66% this week. This gain was notable amid a general market decline. Most stocks fell due to the Iran-Israel conflict and the Federal Reserve’s rate announcements.
Key Financials and Market Position
Tesla’s Price-to-Earnings (PER) ratio stands at 177. Analysts project a 30% increase in Earnings Per Share (EPS) next year. The company’s trailing twelve-month EPS is $1.8. While the beta value remains high at 2.46, the Relative Strength Index (RSI) is at 50.70. This neutral RSI indicates neither overbought nor oversold conditions. It suggests Tesla is at a pivotal point for its stock direction. Trading volume remained subdued at 100 million shares. Furthermore, average option strike prices on Webull are around $304. Significant resistance exists between $320 and $360.
Robotaxi Service Launch
Tesla officially launched its robotaxi service in Austin, Texas. The service operates within a limited 1-2 square mile radius. This area is specifically a historic district. Access is currently by invitation only. Rides cost a flat $4.20. The app functions similarly to Uber. Users can set pick-up and drop-off locations. They then track the arriving Tesla vehicle. Initial tests showed successful autonomous driving. A safety driver was present in the vehicle. Passengers appreciated the seamless experience. Tesla joins several other robotaxi operators in Austin. These include Cruise and Waymo.
Other Business Developments
Tesla introduced an Extended Warranty Program. This allows owners to extend coverage monthly. The company also launched a windshield protection plan. Its Service revenue increased by 15% to $2.6 billion. The Energy business saw a significant 671% rise to $2.7 billion. A second Megapack factory recently completed in Shanghai. This led to a new $556 million contract. Automotive revenue reached $12.9 billion. This excludes regulatory credits. China remains a strong market for Tesla.
Global Sales Performance
Tesla’s sales in China are robust. May saw 15,500 new insurance registrations. Total registrations reached 96,000 recently. Despite a sluggish Chinese economy, the Model Y was May’s best-selling SUV. It surpassed BYD models. In Europe, the Model Y also shows strong performance. There were 35,192 registrations. It holds the second spot in the UK. This places it above Ford. The Model Y is also Spain’s top-selling vehicle. It outperformed BYD there too.
Analyst Price Targets
The average target price for Tesla is $293. Some analysts are more bullish. Dan Ives of Wedbush projects $500. He foresees a $2 trillion market cap by 2026. Morgan Stanley’s Adam Jonas maintains a $410 target. Other firms like Goldman Sachs and Baird have shifted to “Neutral.” They suggest targets around $320. However, many experts remain positive about Tesla’s outlook.
Geopolitical Risks and Market Impact
The Iran-Israel conflict is significantly impacting global markets. The United States’ official involvement complicates the situation. Potential Iranian responses are a concern. These include continued missile strikes or attacks on US bases. A major risk is the closure of the Strait of Hormuz. This Strait is vital for 20% of global oil flow. Such a blockade could send oil prices above $100 per barrel. Goldman Sachs supports this projection. Meanwhile, Bitcoin’s price dropped. It fell below $100,000 to $99,000. Its RSI is nearing oversold territory at 34. All eyes are on how markets react this coming Monday.
Disclaimer: This content is for informational purposes only and does not constitute financial advice. Consult a qualified financial advisor before making investment decisions.