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It’s been a rough week for Tesla naysayers: Bears who claimed its stock is overvalued are now biting their tongues, and short sellers are licking their wounds after losing billions. The stock ended the week up 26%, making it Tesla’s longest stretch in the green since last summer. The eight-day streak canceled losses for the year and added over $200 billion to the EV-maker’s value.
But the heat from the trading floor contrasts with the cool temps at Tesla’s stores.
- Tesla revealed this week that it delivered 443,956 cars in Q2, which was more than analysts predicted but almost 5% fewer deliveries than in the same period last year.
- And it’s been making less money per car since EV competition from automakers like Ford and GM has forced Tesla to slash prices.
Musk and Wall Street are bullish
The CEO told short sellers that they’ll soon be “obliterated.”
Musk has been assuring investors that Tesla’s slowing car business isn’t a problem since it’s not really a car company. He’s been touting plans for a self-driving ride-hailing service and the humanoid robot, Optimus, which he claims could boost Tesla’s value to $30 trillion. For now, the company has earmarked $10 billion for AI research in 2024, and Musk has promised a robotaxi reveal in August.
But…analysts say Tesla still needs to jumpstart its EV business to subsidize the R&D. The company plans to release lower-cost car models by early next year in hopes of spurring sales.