Tesla Shares To Turn Positive After $200-B Rally

An eight-day winning streak for Tesla Inc. shares sent the world’s most valuable automaker into positive territory for the first time this year, Subrat Patnaik reported for Bloomberg News.

Tesla closed up 2.1% on Friday for its longest streak of consecutive daily gains in nearly a year. I Photo: Coolomon Tetris (also known as CoolT) Wikimedia Commons

Tesla closed up 2.1% on Friday for its longest streak of consecutive daily gains in nearly a year. Over that span, the stock has gained 38%, adding $220 billion in market capitalization.

Earlier this week, the rally got a boost from second-quarter deliveries that beat the average analyst estimate.

While analysts were positive about those stronger-than-expected deliveries, they marked the automaker’s first consecutive quarterly decline for deliveries in more than a decade, Jeran Wittenstein also reported for Bloomberg News.

The carmaker on Tuesday said it delivered 443,956 vehicles in the second quarter, exceeding the average of 439,302 that analysts on Wall Street had estimated, but falling compared with prior quarters.

“The worst is in the rear-view mirror for Tesla,” Wedbush Securities Inc. analyst Daniel Ives wrote in a Friday note. “Very importantly, it appears China saw a ‘mini rebound’ in the June quarter.”

A Chinese government statement said a number of state-owned companies in Shanghai have bought Tesla’s Model Y for business use. However, heightened competition in the country has kindled price wars and demand worries for the EV maker this year.