Tesla Stock Price (NASDAQ: TSLA) Reversal, +62% In Under 3 Months

The Tesla stock price (NASDAQ: TSLA) had a strong day, ending up a little over 10%. This marks a 62% gain since the close on April 22nd, less than 3 short months ago for the stock, which had previously been coming under pressure. With the shares still slightly down on a YTD basis, there is a lot of whipsaw through 2024. So why is Tesla up?

The one day rise has been attributed to the electric vehicle (EV) manufacturer's second-quarter delivery numbers, which exceeded analyst expectations by a margin. Longer term, bullish sentiment in the company amid Elon Musk's pay deal approval from shareholders was seen as another pivotal point.

Despite operational challenges and broader economic concerns, Tesla reported nearly 444,000 deliveries globally in the second quarter. A vast majority of these deliveries were attributed to the mainstream Model 3 and Model Y cars, which have become staples in Tesla's lineup. However, it is important to note that these figures are still a slight decline from the 466,000 deliveries reported in the same quarter of the previous year.

The EV sector, as a whole, is witnessing some growth. Global sales of electric vehicles soared from 9% of new auto sales in 2021 to an impressive 14% in 2022. This sharp increase translates to approximately 10.2 million EVs delivered worldwide, emphasizing the accelerating transition from traditional combustion engines to electric powertrains.

Within this rapidly expanding market, China's BYD has emerged as the largest manufacturer of EVs, selling 1.8 million vehicles in 2022 alone. The 2023 ranking of EVs has BYD as a challenger for the lead, claiming a 17.7% share of the global market. Tesla, with its focus solely on battery electric vehicles (BEVs), commands a 19.9% market share. This distinct strategy separates Tesla from other manufacturers who may offer a mix of BEV and hybrid vehicle options.

As the financial markets continue to adapt to the evolving landscape of the automotive industry, Tesla's position within the EV market remains pivotal. With its dedicated pursuit of BEVs and noteworthy delivery performance, the company is at the forefront of the electric revolution, capturing both investor interest and market share.