Tesla's second surge in just ten days, up over 7%, all because of the booming sales in China?
Analysts believe there are two key catalysts: one is macro factors, and the other is Tesla itself.
Tesla closed up 7.69% on Tuesday, while other tech giants performed mediocrely.
It is worth mentioning that Tesla also experienced a surge of over 7% last Monday. What caused Tesla to "make a comeback"?
Analysts believe there are two key catalysts: one is macro factors, and the other is Tesla itself.
Catalyst 1: Expectations of no rate hike by the Fed in September
Gary Black, a fund manager at Future Fund, said that the signal of the Fed's pause in rate hikes and its shift could greatly boost growth stocks such as Tesla.
The US Job Openings and Labor Turnover Survey (JOLTS) report for July, released on Tuesday, showed that job openings in the US reached a two-year low of 8.827 million, far below the market's expected 9.465 million, which may indicate that the US labor market is peaking.
The US Conference Board's Consumer Confidence Index for August also fell short of expectations.
This prompted traders to increase their bets on the Fed's pause in rate hikes in September. As a result, the 10-year US Treasury yield fell by 8.6 basis points to 4.116%.
This is particularly favorable for growth stocks, and investors are more interested in the long-term prospects of companies such as Tesla, Rivian, and NVIDIA.
Catalyst 2: Steady increase in Tesla deliveries
The fund manager also stated that Tesla's stock price will be boosted by deliveries in the third quarter, with particularly strong performance in the Chinese market.
Recent data shows that Tesla delivered 17,000 vehicles in China within a week. This means that the delivery volume in the third quarter may exceed the record-breaking 156,700 vehicles in the second quarter.
In addition, Gary Black believes that an upcoming catalyst is significant and may generate a "halo effect" within Tesla's ecosystem, further driving the company's prospects.
