Tesla shares wrapped the longest winning streak since January 2021 on Friday as the stock jumped over 4% for the day contributing to a 14% rally for the week.
A strategic deal with GM, sales growth in China and eligibility for the new $7,500 tax credit for customers buying the Model 3 helped sentiment, as did a favorable mention by analyst Dan Ives of Wedbush Securities who raised his price target on the stock to $300 from $215.
On Thursday, GM reached an agreement with Tesla to adopt the electric vehicle giant's charging standards and gain access to its Supercharger network nationwide as part of the carmaker's effort to expand charging access to customers.
Following a behemoth 65% drop in value last year, Tesla shares are up big in 2023, rising roughly 98%.
TESLA MODEL 3 VEHICLES NOW QUALIFY FOR $7,500 TAX CREDIT
The move is creating another windfall for Elon Musk who is the world's richest person with a net worth of $226 billion as tracked by Forbes.
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.
ELECTRIC FISKER TRUMPS TESLA ON RANGE, WILL START US DELIVERIES JUNE 19
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.
RECALL OF 137 TESLA MODEL YS OVER ISSUE WITH STEERING WHEEL FASTENER
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."
GET FOX BUSINESS ON THE GO BY CLICKING HERE
*This story, originally published on June 8, has been updated with Friday's closing prices.
