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Why Auto Stocks Outperformed the Broader Market Last Week

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Part 5
Why Auto Stocks Outperformed the Broader Market Last Week PART 5 OF 5

Why Tesla Stock Rose Last Week despite Mixed 2Q17 Deliveries

Tesla stock

So far in this series, we’ve looked at key drivers for mainstream automaker stocks (XLY) like General Motors (GM), Fiat Chrysler (FCAU), and Ford (F). Now let’s move on by looking at the recent Wall Street performance of electric carmaker Tesla (TSLA).

Last week, Tesla stock witnessed a recovery and rose 4.6% after falling 13.4% in the first week of July, which was the worst week for the company’s stock in 2017 so far. Tesla stock posted fresh all-time highs near $386.99 on June 23 and turned negative after that.

Why Tesla Stock Rose Last Week despite Mixed 2Q17 Deliveries

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Is Model 3 driving Tesla stock?

Tesla released its 2Q17 vehicle deliveries data on July 3. The company’s car deliveries stood near 22,000, which reflected a 53% YoY (year-over-year) rise but a drop of ~12% quarter-over-quarter. With this, Tesla was only able to meet the lower range of its guidance for 1H17. Earlier, the company guided to deliver 47,000 to 50,000 cars in 1H17 and it ended up delivering approximately 47,100 cars.

TSLA is likely to begin the initial production of its much-awaited Model 3 in July. The company plans to increase Model 3 production substantially by the end of 2017. Investors’ high expectations from Tesla’s Model 3 could be the primary reason why its stock recovered last week despite mixed 2Q delivery figures.

Technical levels

Last week on Friday, Tesla stock settled at $327.78. An immediate resistance lies near $337.00 while a swing near $321.50 could act as a minor support level for the stock.

Mainstream automakers GM, Ford, and Fiat Chrysler are set to release their 2Q17 earnings results in the final week of July. Visit our Autos page to stay updated on auto companies’ 2Q17 earnings estimates.

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