Tesla stock jumps to highest levels since February, notching 3rd straight week of gains
Tesla (TSLA) stock surged higher Friday, pushing shares to their highest level since February as the EV maker notched a third straight week of gains.
General sentiment on trade drove Friday's gains, with President Trump floating a cut to US tariffs on Chinese imports ahead of this weekend's negotiations. The upbeat news on China trade policy comes after the White House struck a trade deal with the UK.
Tesla shares closed up 4.7%, with shares up around 4% for the week. Tesla stock is up nearly 15% in the past three weeks, boosted by an earnings update highlighted by CEO Elon Musk signaling he planned to spend more time at the company as he transitions away from the Trump administration.
The news this week for Tesla was not all positive, however, as continued sales weakness plagued the Europe region.
On Tuesday, the latest data from the UK found that Tesla registrations (a proxy for sales) hit only 512 new vehicles in April, per the Society of Motor Manufacturers and Traders auto trade group. That figure is down 62% from a year earlier.
Read more about Tesla's stock moves and today's market action
Tesla's UK underperformance follows weakness in other key regions. Germany's KBA trade group reported registrations in that country dipped 46% to 885. Germany is home to Tesla's only European factory.
Tesla registrations also fell in key territories like France (down 59%), Denmark (down 67%), and Sweden (down 81%), per Bloomberg data polling national auto associations. The drops in April mirror tumbling European sales in March as well.
First quarter sales also slid more than analysts expected.
Even in Tesla's home market of the US, the company has had to pull additional levers to boost sales.
The automaker added a new rear-drive version of the newly refreshed Model Y SUV in the US, with a starting price of $46,630 before incentives.
The move came as the company added cheap financing to the new Model Y, aiming to boost sales in the second quarter. Meanwhile, EV blog CarScoops noted that Tesla Model Y Launch Editions are piling up at Tesla showrooms, meaning demand is a problem for the $59,900 vehicle.
But with Tesla, fundamentals often do not drive stock performance. The big bets on Tesla now are based on market sentiment, trade, Musk's return from the White House, and Tesla's big bet on robotaxis.
Just don't ask whether only Tesla can use the term "robotaxi" — the company lost its bid on Thursday for exclusive use of the term in a ruling by the US Patent and Trademark Office.
Pras Subramanian is a reporter for Yahoo Finance. You can follow him on X and on Instagram.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Bloomberg
13 minutes ago
- Bloomberg
Dollar Ructions Lay Groundwork for a ‘Global Euro Moment'
When the euro was born more than a quarter century ago, it arrived with much fanfare. Even the US Federal Reserve chair of the time, Alan Greenspan, was excited. 'To the extent the euro becomes a far more formidable force in the world economy, it's a benefit to everybody, especially the US,' he said in January 2000. Today, while undoubtedly the second-most important reserve currency in the world, the euro holds a shadow of the dollar's influence. European economic policymakers, with plenty of intra-region challenges and crises to keep them busy, had little reason to imagine the euro's global role might do anything other than fade. Until Donald Trump's White House return, that is.
Yahoo
23 minutes ago
- Yahoo
Tesla stock's up 75% in a year! Time to buy?
There is rarely a shortage of news – or opinions – when it comes to electric vehicle maker Tesla (NASDAQ: TSLA). But while there has been a fair bit of doom and gloom around lately when it comes to the firm, Tesla stock is now 75% higher than it was a year ago. The long-term performance has been even more impressive. Every pound put into Tesla stock five years ago is now worth over a fiver (ignoring exchange rate movements during that period). So, could this be one to tuck away in my portfolio today and hope for more money-spinning magic in future? At the right price, my answer would be an unambiguous yes. Vehicles are a huge business and likely to stay that way. Over time, I expect electric cars and trucks to form a growing part of that market. Tesla is well-positioned here: it has a vertically integrated manufacturing model already operating at scale, a strong brand, proprietary technology, and large base of existing customers. However, this market is different to how it was a few years ago. Tesla has lost its pre-eminence, as Chinese rivals including BYD expand at pace both in their home market and overseas. Tesla's first-quarter sales were sharply lower than last year. That could reflect some production lines being out of action for part of the period as well as adverse publicity related to Tesla's chief executive's political involvement. But a key factor behind the fall – and one I see as a long-term risk – is a more competitive marketplace. That risks eating into profit margins across the industry. I also see opportunities for Tesla beyond making and selling cars. One is its planned launch of self-driving taxi fleets. Another is the robotics business. On top of that, it already has a sizeable power storage business that is growing very fast. Given the rise in its stock price over the past year, Tesla is currently sitting on a nice round market capitalization of $1trn. That is a lot of money. Never mind whether the stock can move higher in future, is it even worth its current price? I do not think so. The Tesla stock price-to-earnings ratio now sits at a dizzying 176. Ford, by contrast, is on 8 and General Motors on 7. Tesla's valuation seems to build in huge expectations for future performance. But as I discussed above, recent signs about the company's business performance have been alarming, not encouraging. While power storage is doing well, the core car business has been in reverse. Meanwhile, its competitive environment is becoming more challenging by the month and I do not see that changing. To me, the current Tesla stock price looks unjustifiably high. So, I shall not be investing. The post Tesla stock's up 75% in a year! Time to buy? appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool C Ruane has no position in any of the shares mentioned. The Motley Fool UK has recommended Tesla. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Sign in to access your portfolio
Yahoo
24 minutes ago
- Yahoo
2 New IPO Stocks in Town – Citi Picks the Superior One to Buy
After a record-setting surge in 2021, IPO activity took a sharp downturn in 2022. Since then, the market has been gradually regaining its footing, with the past two years showing a steady upward trend in both the number of IPOs and total proceeds raised. Early data from the first quarter of 2025 suggests that this positive momentum is continuing. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter In 1Q25, 59 companies went public, marking a 55% jump from the 38 IPOs recorded in the same quarter last year. However, despite the increase in volume, total proceeds remained largely flat at $8.9 billion, up just $100 million year-over-year. Several key factors appear to be fueling this renewed activity: broad market strength despite early-year volatility, expectations of a pro-business stance under the Trump Administration, anticipated interest rate cuts as inflation continues to ease, and a burst of innovation across AI, cybersecurity, and fintech – all helping to restore investor appetite for newly listed companies. Against this backdrop, Citi analysts have zeroed in on two newcomers. Both companies have caught Wall Street's eye, but Citi is leaning firmly toward one as the stronger long-term play. To see how that view stacks up across the Street, we turned to the TipRanks database. Let's dive in. eToro Group (ETOR) The financial markets operate on a global platform, and the first IPO stock on our list embodies that. eToro is a popular platform that blends online investing with elements of social media, a combination it has leveraged for ongoing success. From its base in Tel Aviv, eToro oversees a network of offices in important global financial centers: in the UK, the US, Cyprus, Australia, Germany, and the UAE. eToro has more than 3.5 million funded accounts, with traders in 75 countries. The company has described its mission as giving investors a simple and transparent platform for online trading. eToro was founded in 2007, and earlier this year, after 18 years of operation, the company went public through an IPO. The initial announcement of the stock offering specified that 10 million shares would go on the market, 5 million from the company and 5 million from 'certain existing shareholders.' On May 13, the company amended that, upsizing the offering to 11,923,018 shares, again split evenly between eToro and existing shareholders. The initial price was set at $52 per share, above the originally planned range of $46 to $50. and the stock started trading on the NASDAQ on May 14, with the company raising ~$310 million from the IPO. eToro currently boasts a market cap of approximately $5 billion. In its first quarterly readout as a public company, announced earlier this week for 1Q25, eToro realized a net contribution of $217 million, a figure that was up 8% year-over-year and beat the forecast by $3.22 million. At the bottom-line, EPS of $0.69 came in $0.09 above Street expectations. Opening coverage of this newly public stock, Citi's Christopher Allen, an analyst ranked in 13th spot amongst the thousands of Street experts, sees a balance between the risks and rewards here. The 5-star analyst writes, 'eToro stands out for its regional diversity, brand, unique offerings, crypto leverage, and clear product/regional expansion opportunities. And overall we remain constructive on the health/resiliency of the retail segment and bullish on the outlook for European retail specifically. But we see some challenges as well, including healthy competition in traditional retail, likely increasing competition in crypto with new regulation, expected volatility in results from crypto and market making elements of model, the relative level of marketing spend, and sustainability of current ROCA levels. We see a balanced risk/reward at current levels.' Allen's stance backs up his Neutral (i.e., Hold) rating on the stock, although his price target of $72 suggests that eToro's shares will gain 12% this coming year. (To watch Allen's track record, click here) In its short time on the public market, ETOR stock has picked up 15 analyst reviews – and their 8 to 7 split between Buy and Hold gives the stock its Moderate Buy consensus rating. The shares are priced at $64.17, and the $74.78 average target price implies the shares will climb 16.5% higher over the next 12 months. (See ETOR stock forecast) Aspen Insurance Holdings (AHL) Next up is an insurance company, Aspen Insurance Holdings. Aspen is a specialty insurer and reinsurer that gives its customers a range of innovative solutions to protect their capital. The company uses its access to Aspen Capital Markets to leverage third-party capital in the insurance industry, giving its own insurance and reinsurance segments the advantage of increased flexibility. Like any successful insurer, Aspen delivers on the key promises of the industry: protection for insured assets, and solid service on the claims side. Aspen does not compromise its business relationships for short-term gains, and instead adheres to an insurance model and underwriting approach that supports sustainable operations through changing market cycles. Among its specialty insurance products, Aspen provides backing for a range of environmental policies, railroad protection policies, and excess casualty policies. On the casualty side, one of the insurance industry's most important segments, Aspen works with eight experienced underwriters to provide coverage that is customized and creative, giving its customers solutions for any unique or challenging exposures that may arise. Aspen also offers cyber insurance products, and a wide range of professional liability insurance policies in the US and international markets. The company can also provide policies to cover crisis situations, from kidnapping to piracy, and even specie policies, to cover the transit risks associated with fine art, metal bullion, jeweler's block, and more. In short, Aspen is a wide-ranging insurance company, capable of meeting all customers' needs. On May 7, Aspen announced pricing for its IPO, an upsized offering of 13.25 million shares at $30 each, with trading beginning on May 8. The company raised $397.5 million during its IPO. The company's market cap stands at $2.56 billion. This past June 3, Aspen released its first set of financials as a public entity. The release, for 1Q25, showed that the company had total revenues of $789.1 million, up 4.4% from 1Q24, and a Q1 net income of $36.8 million, down from $111.8 million in 1Q24. Aspen had $1.287 billion in total gross written premiums on the books as of March 31. Matthew Heimermann covers this stock for Citi, and he believes that the company has sound prospects for the future. Heimermann writes of Aspen's potential, 'The market appears skeptical that Aspen has changed for the better. We get it, the company's previous track record as a public company was lacking (Aspen was publicly listed between 2003-2019). However, we think investors are incentivized to take the contrarian view and expect higher future operating returns than shares appear to be discounting. Why? Encouraging recent and past performance, potentially more tailwinds than headwinds, reasonable expectations, and an undemanding valuation relative to potential returns and/or volatility.' The analyst goes on to put a Buy rating on AHL shares, and he backs that with a $43 target price that implies a one-year upside for the stock of 34%. Wall Street gives this stock a Strong Buy consensus rating, based on 8 recent reviews that break down 6 to 2 in favor of Buy over Hold. The shares are priced at $32, and the $40.63 average price target suggests a gain of 27% on the one-year horizon. (See AHL stock forecast) After laying out the data, it's clear that Citi has chosen Aspen Insurance as the superior IPO stock to buy now. To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment. Disclaimer & DisclosureReport an Issue Sign in to access your portfolio
