Tesla Stock Having Its Longest Win Streak Yet

Tesla shares have been on a tear in recent weeks, and the stock has officially achieved its longest win streak since going public. The news comes on the heels of recent announcements that Ford, GM and now others will adopt Tesla’s North American Charging Standard (NACS) and they’ll gain access to the automaker’s Supercharger network.

Above: A Tesla Model S (Image: Casey Murphy / EVANNEX).

At the time of writing during after-hours on Monday, Tesla shares were trading at $250.15. As pointed out by MarketWatch, Tesla’s previous win streak of 11 gains took place in January 2021, though the automaker’s shares matched that streak closing with a win last Friday. With the gains on Monday, Tesla stock has clinched its longest win streak yet.

The win streak seems to signal a positive investor outlook on recent Tesla charging partnerships with Ford and GM, as well as improving deliveries in China, which is the world’s largest auto market. Mizuho analyst Vijay Rakesh cited Tesla’s sales in China, calling the company’s deliveries “strong” compared to other automakers, and noting that deliveries in April were up “significantly” year over year.

“We believe [Tesla] registrations in China are improving,” Rakesh wrote in a note to clients.

Rakesh expects that Tesla deliveries are “trending better into May/June” in China, as the company’s four-week rolling average rose to roughly 12,000 for the week ending June 4. The company’s four-week rolling average hit 10,000 leading up to the week ending May 14. During the same period, Rakesh notes that Nio registrations have been declining.

In the first quarter of the year, about 21 percent of Tesla’s global revenue came from the Chinese auto market, amounting to $4.89 billion out of the company’s $23.33 billion revenue total.

Many believe that the auto industry’s move toward adopting Tesla’s NACS charging port and Supercharger stations is a good sign, as the Combined Charging System (CCS) currently used by Ford, GM and others has been considered less dependable. Mark Hanchett, CEO of battery cell manufacturer Nxu, said that the shift away from CCS systems was led by several “unreliable equipment and unpredictable charging experiences” at non-Tesla charging stations.

Tesla is also set to begin delivering the Cybertruck later this year, and the automaker has announced plans to develop a mass-market vehicle that’s more affordable than its current lineup. In addition, CEO Elon Musk has continually pointed to software-like profit margins that he says will be unlocked when the company’s cars reach full autonomy.

It’s tough to say where Tesla shares will head next, though many bulls have been encouraged amidst the win streak. Tesla will share its Q2 earnings in July, and investors will be eager to see how the automaker’s margins fare in the quarter, given price cuts throughout the year and other economic factors.

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