Tesla stock is on an epic run, rising for a ninth consecutive session on Monday. It will take a little help from artificial intelligence to keep the streak alive.
Shares opened lower, trading below $245, before rallying as high as $259.44. The stock closed up 0.6% at $252.94 while the
S&P 500
rose 0.1% and the
Dow Jones Industrial Average
fell 0.1%.
A nine-day winning streak is impressive but
Tesla
shares are given to extremes. Look no further than Wall Street to understand why. The difference between the highest and lowest analyst price targets is roughly $200, or about 80% of the recent stock price. The ratio for
Apple
stock is about 40%.
Moves in the price show a similar pattern. Over the past five years, Tesla stock has spent almost half the time trading above Wall Street’s average price target. The number for Apple is closer to 20%.
Tesla’s Jekyll and Hyde nature has separated it from other large tech stocks for much of 2024. For most of the year, shares of the EV maker were left in the dust by the other Magnificent Seven stocks:
Microsoft
,
Nvidia
,
Apple,
Amazon.com
,
Alphabet
,
and
Meta Platforms
.
Coming into Monday, those six stocks had risen by an average of about 53% this year.
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Until Friday, Tesla was the only one of the seven with a loss in 2024. But after gaining 39% over the past nine trading sessions, shares are now up almost 2% this year.
It has been a good time for all the Magnificent Seven stocks. Coming into Monday’s trading, the other six gained an average of 7% during Tesla’s recent run. The
S&P 500
gained about 2%.
While the business opportunity from artificial intelligence is helping all of the Magnificent Seven except Tesla, the picture…
..
