Tesla shares are on pace to log their 10th-straight gain amid sales growth in China and eligibility for the new $7,500 tax credit for customers buying the Model 3.
The recent winning streak marks Tesla’s longest since January 8, 2021, when it recorded gains in 11 consecutive trading days.
Following a behemoth 65% drop in value last year, Tesla shares are up big in 2023, rising roughly 89% since Jan. 1, and moving up around 35% the last 30 days.
Data compiled by the China Passenger Car Association (CPCA) on Monday showed that Tesla delivered 77,695 China-made electric vehicles in May to notch a 2.4% jump from April, while the Biden administration’s Tuesday confirmation of the tax credit will make the Model 3 even cheaper than the Toyota Camry.
Throughout the first quarter in China, Tesla generated $4.89 billion, while in 2022, the company’s sales in China reached just $18.15 billion for the year.
In an interview with FOX Business, Ed Egilinsky, Managing Director at Direxion, said that some of Tesla’s recent rally can also be attributed to investor focus on participating in the mega-cap stock-led rally and the AI buzz.
Also, “CEO Elon Musk visited China last week and many perceive this will result in positive developments for the relationship,” he added. “While some traders might trade off the headlines to capture the short-term upward price momentum, others might look at this as an opportunity to take a bearish view, believing the stock rally has been overextended in the short term and might see a reversal in trend.”