Tesla stock rallied
On June 6, Tesla (TSLA) stock settled at $319.50 with 9.7% gains for the session. Tesla registered the highest gains in the last 31 months. The impressive stock rally might have been driven by investors’ high expectations from Tesla’s second-quarter Model 3 production and deliveries data. During Tesla’s annual shareholder meeting, CEO Elon Musk indicated that Tesla is on the path to achieve its Model 3 weekly production rate targets.
Stock performance in 2018
In 2018, Tesla stock has been on a rollercoaster ride. The stock rose 13.8% in January, while it lost ~24.9% in February and March combined. Similarly, the second quarter started on a positive note. Tesla stock rose 10.4% in April, but fell in May and saw 3.1% value erosion.
As of June 6, Tesla has risen 2.6% on YTD (year-to-date) basis—compared to 3.7% positive movement seen in the S&P 500 benchmark. General Motors (GM) and Fiat Chrysler (FCUA) have risen 7.2% and 18.7%, respectively, while Ford Motor Company (F) has lost 3.1% YTD.
Last week, General Motors and Fiat Chrysler made important announcements about their autonomous vehicle (XLY) development. Japanese investment giant SoftBank decided to invest $2.25 billion in General Motors’ autonomous vehicle development arm—General Motors Cruise Holdings. Fiat Chrysler strengthened its partnership with Alphabet’s (GOOG) (GOOGL) Waymo. Read Auto Industry’s May Updates: Autonomous Vehicles in Focus to learn more.
Next, we’ll discuss the key highlights of Tesla’s annual shareholder meeting, which drove the stock higher on June 6.