Among the widely traded technology stocks making a comeback, Tesla (TSLA) joined the list. Shares gained 27% in the last week when market sentiment suddenly reversed. The firm posted quarterly deliveries that fell by 4.8%. Traders ignored the price erosion in EVs and falling demand. Instead, it priced in a brighter second-half outlook for Tesla.
Before that, Apple (AAPL) prevented a stock sell-off after posting a fall in iPhone sales. This is due mostly to weak demand in China. However, Apple slashed prices in its 618 mid-year sales event to boost sales.
In 2022/23, Meta Platforms (META) pivoted out of its metaverse project. It re-applied its hardware and software development to its AI platform, Llama.
Alphabet’s (GOOG) Google reversed the public’s skepticism about its AI, Gemini. People now expect Gemini will compete effectively against Microsoft’s (MSFT) investment in ChatGPT.
Tesla’s Rebound Explained
Markets are realizing that established automotive firms like General Motors (GM), Stellantis (STLA), and Ford (F) will not mount a meaningful challenge to Tesla’s market. They are betting that weak Q1 sales are a cyclical low. When it posts Q2 results on July 23, the firm will update shareholders on sales of its Model Y, its premium Model S and X, and Cybertruck sales.
