Tesla stock barely budged on Tuesday. Here’s what the story says happens next.
the stock continued its recent winning streak on Tuesday, with the lowest margins – stocks only rose 7 cents. It’s very rare that Tesla‘s stock does nothing. And when he does nothing, it’s actually a good sign for investors.
Tesla stock (ticker: TSLA) closed at $ 709.75, up 0.0099%. the
Dow Jones Industrial Average
both closed up about 0.8%. Tesla stock rose for five consecutive trading sessions, adding 10.1%.
Better-than-expected earnings seem to have catalyzed the jump. Stocks fell the day after the second quarter numbers were released, but quickly recovered and rose since the July 28 report.
Wednesday could mean more earnings for Tesla shareholders. Barron found Tesla stock had moved less than 0.1%, up or down 9 times since the start of 2019, including Tuesday. This happens once every 70 trading days. Six of the eight times before Tuesday, stocks rose the next day by 1.8% on average. The S&P 500 was stable, on average, those days.
Frankly, predicting a day’s stock market performance based on a previous day is not good analysis. But Tesla, as always, is a special case that is under close scrutiny by Wall Street analysts, investors and the press.
And Tuesday was a slow news day for the world’s most valuable automaker. Piper Sandler analyst Alexander Potter looked at second quarter numbers and Tesla’s quarterly filing in a research report, but hasn’t changed much.
“Summary: We still love this action very much,” Potter wrote. He points out that Tesla is the number one brand of electric vehicles in the United States, the number two brand in China and the number two brand in Europe. Potter maintained his buy rating and his target price of $ 1,200, Wall Street’s highest target price.
Examining day-to-day performance trends is also an opportunity to remind investors that the likelihood of a stock going up or down on any given day is a little better than a draw, a 50/50 bet. Tesla stock, since early 2019, has risen 350 times and has fallen 301 times. The numbers for the S&P 500 are 376 days up and 275 days down. It makes sense that stocks go up more often than they fall, the stock market tends to go up over time.
Tesla’s stock so far in 2021 is mostly flat. Stocks paused after an epic 743% gain in 2020.
Corrections and amplifications: Tesla stock is stable in 2021. An earlier version of this article indicated that it was stable in 2020.
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