Tesla’s stock surged by a notable 6% on July 1, 2024, marking a positive start to the month. Interestingly, several industry followers speculate that the stock increase is primarily because of Chief Executive Elon Musk’s activity on social media platform X.
Tesla stock surges over 6% to start the month
Tesla managed to sustain the gains that drove its stock up more than 19% so far in the prior month, with another 6%+ increase on Monday morning.
Interestingly, several industry followers imply that this recent stock jump is due to CEO Musk’s recent move on X, hinting at the potential involvement of a ride-hailing platform veteran in its robotaxi efforts.
Industry followers speculate CEO Musk’s move stimulated the stock increase
Tesla CEO Elon Musk recently followed Uber founder Travis Kalanick on X.
The intriguing move occurred just more than a month before Tesla debuts its new robotaxi on August 8, 2024.
Notably, Kalanick already left Uber in 2017. He undoubtedly possesses a solid and proven track record in ride-sharing platform development. Therefore, it will no longer be surprising if he joins Tesla’s robotaxi project.
In hindsight, Tesla previously announced plans to launch its own ride-hailing fleet with its next-gen robotaxis in the future.
CEO Musk’s mere follow-up to the former Uber leader on X already has some fans anticipating Tesla’s potential to “become the next Uber.”
Other affecting factors
Apart from CEO Musk’s move, The Motley Fool also suggests that the stock gains are partly due to the year-on-year growth of the Chinese electric vehicle industry.
For context, BYD’s electric vehicle deliveries reached about 426,000 units in the second quarter of the year. This figure enables industry observers to estimate Tesla’s deliveries to be somewhere around that number in the same quarter.
Wall Street expects Tesla’s deliveries to drop year-on-year in Q2 2024. However, it expects the figure to record growth compared to the first quarter of the year.
Analyst consensus expects Tesla delivery to hit 438,019 units, putting its H1 2024 results at less than 1 million units. This represents a tremendous gap from many fans’ expected 2 million units, potentially marking a new milestone in Tesla’s history.
Tesla’s thrilling plans and promises with its next-gen platform and robotaxi could lead to significant growth in the coming years. However, it has a history of missing deadlines. Therefore, its ability to deliver on these promises will be crucial for its success.
