Factors that will drive Tesla’s stocks up again

Tesla: Facing Short-Term Challenges and Long-Term Opportunities

While Tesla is currently dealing with short-term challenges related to production and competition, its strong fundamentals and potential political opportunities could lead to a significant long-term appreciation of its stock.

The Impact of Trump’s Re-Election on Tesla Stock

How could a re-election of Trump in the US presidential elections impact the price of Tesla stock? The answer might surprise you.
Political decisions can have a significant influence on the stock market.

Recent Performance of Tesla (TSLA) Stocks

In the recent weeks, Tesla (TSLA) stocks have experienced high volatility.
At the beginning of July, the stocks surged significantly following a strong vehicle delivery report for the second quarter, which surpassed analysts’ expectations.
Despite delivering around 444,000 vehicles, beating the 439,000 estimated, the numbers were slightly lower compared to the 470,000 delivered in the second quarter of 2023.

However, on July 7th, Elon Musk announced a delay in the rollout of the robotaxi project, initially scheduled for August, now postponed to October.
This announcement led to a notable sell-off, causing the stocks to shed some of their recent gains.

Changes in Tesla’s Fundamentals

On the fundamentals front, Tesla has continued to demonstrate solid growth.
In 2023, the company reported revenues of $96.77 billion, an 18.8% increase from the previous year, and profits of $15 billion, up by 19.4%.

For the second quarter of 2024, analysts predict stable profits despite a decrease in deliveries compared to the previous year.
The expectations are for profits that mirror efficient cost management and an enhancement in profit margins, driven by economies of scale and growing sales of high-margin products like autonomous driving software.
Tesla is set to announce its financial results for the second quarter on July 23, 2024.

The Real Reason Behind the Potential Appreciation of TSLA Stocks

Elon Musk recently made headlines with a statement on X (formerly Twitter), where he expressed his full support for Donald Trump in the upcoming presidential elections.
This endorsement raised some concerns, as a Trump presidency could lead to policies favoring internal combustion vehicles and potentially reducing the demand for electric vehicles due to lower oil prices.

However, Musk’s support could indicate something different for Tesla.
During Trump’s previous term, deregulation policies and tax incentives for businesses benefited technological and innovative companies like Tesla.
Furthermore, Musk might see an opportunity in Trump to influence policies that support the development of electric vehicle infrastructures and advanced technologies like artificial intelligence and robotaxis.