After a multiday winning streak, Tesla (NASDAQ:TSLA) stock has now ended the week slightly in the red. Still, although shares have dipped today, investors have plenty of reason to believe Tesla will soon return to smoother roads. The electric vehicle (EV) innovator has seen mostly good news over the past few days; Tesla is now delivering EVs from its Berlin Gigafactory and is currently basking in some exciting updates.
Of course, Tesla did raise vehicle prices last week, but that hasn’t forced shares down like some people have feared. Sure, media coverage of the company has been fairly mixed. But it seems that the good news has more or less overshadowed the bad.
As shares rose this week, enthusiasm for Tesla also climbed. Now, TSLA stock is among the top trending names on Reddit’s r/WallStreetBets. Let’s take a closer look at what has been happening with Tesla and its fans this week.
TSLA Stock News: Top Headlines of the Week
Elon Musk: Tesla aims to complete Cybertruck development this year for production in 2023
This week, an announcement from CEO Elon Musk likely sparked even more interest for anyone following Tesla. Fans and investors alike were already excited for the Berlin Gigafactory delivery day. Attendees got to witness Musk dance, but they also received some good news regarding the long-awaited Cybertruck. According to the CEO, Tesla hopes to begin production of the EV model as early as 2023, after concluding design work this year. This type of buzz should help keep TSLA stock elevated as further updates on the Cybertruck and Roadster come to light.
Tesla’s Winning Streak Hits 8 Days. Not Every Stock Move Makes Sense.
This headline sums up an important reminder for investors puzzled by Tesla’s recent growth spurt. Of course, some of TSLA stock’s recent streak “doesn’t seem to line up with any fundamental revelations about the company or the EV market.” As Barron’s Senior Writer Al Root acknowledges, though, this type of phenomenon isn’t necessarily reason to be skeptical of the stock’s sustainability. A stock move is not always correlated with specific catalysts. To that end, TSLA stock has proven it has the power to rise unexpectedly. Given the recent momentum, it’s also likely to continue climbing.
Tesla ‘is entering a new growth phase’: Analyst
TSLA stock has received favorable coverage from many analysts. Recently, Garrett Nelson of CFRA touted the stock as a secular growth play investors shouldn’t ignore. Nelson told Yahoo! Finance that the EV innovator is poised to enter a new phase of growth, citing the company’s two new factories. As the analyst sees it, Tesla will start scaling production dramatically, which will send revenue even higher in turn. Nelson has a price target of $1,250 for the stock.
Tesla Spends Least On Ads, Most On R&D: Report
One thing Tesla has proven is that a powerful brand sells itself. This week, StockApps reported that the company does not do any advertising. According to the report, this allows it to allocate more funds to research and development. For investors, these findings are a win-win. In an age when companies sometimes spend billions of dollars on ads, Tesla is able to focus on building and developing its tech, thereby getting its products to market faster. This is a competitive edge that may not always be accounted for when investors analyze TSLA stock.
Tesla Could Take Back Europe’s EV Market
So far this year, Tesla has worked hard to secure a share of the European electric vehicle market. According to the Wall Street Journal, it is well on its way. London-based financial writer Stephen Wilmot sees Tesla as ushering in a new wave of transportation in Europe. Previously, Tesla had to “rely on imports from China” for its European EVs, but establishing the Berlin Gigafactory has potential to shift the market further in the company’s favor. Tesla products were well-received in Europe before the factory opened. Now, the company has the ability to produce and distribute cars built in Europe for the people that live there.
Why Is Tesla’s Autopilot Feature So Controversial?
Tesla’s battle with full self-driving (FSD) technology has been long and well-documented. This week, Newsweek addressed the consistent controversy surrounding the company’s automation goals. Some feel that Tesla is introducing drivers to a type of technology they are not ready for. Others say bringing FSD to major cities could pose severe risk for citizens. However, while the company has had to recall vehicles due to automation problems before, the bad news has never pushed TSLA stock down for long.
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
