Tesla's 27% rally this week erased its annual loss.

• Tesla's stock has experienced a significant surge, erasing its 2023 loss after a sluggish beginning to the year.
• Tesla's stock price closed at $251.55 on Friday, marking a 27% increase in value for the week.
• On Tuesday, the automaker announced second-quarter vehicle deliveries that surpassed Wall Street predictions.

On Friday, the stock price increased sufficiently to erase its yearly loss and boost its weekly profit to 27%.

The stock price of the electric vehicle manufacturer dropped to $138.80 in April and ended the year at $248.48, before closing at $251.55 on Friday.

The second-quarter deliveries report, which was better than expected, sparked the latest rally. Although deliveries decreased by 4.8% from the previous year, the decline was less severe than the first quarter, providing investors with reasons for optimism about the second half.

In April, Tesla's stock price reached its lowest point in a year due to a series of negative events. The company's automotive sales decreased in the first quarter, layoffs were announced, and there were rumors that Tesla had abandoned plans to manufacture an affordable family car at its Texas factory.

Tesla will release its second-quarter financial results after the market closes on July 23, with automotive gross margins being a key area of interest.

Tesla has been providing significant discounts and incentives to entice customers to purchase its aging range of electric vehicles, including the popular Model 3 sedans, Model Y crossover utility vehicles, and the more expensive flagship Model S sedans and Model X SUVs.

In late 2023, Tesla began selling its angular Cybertruck. A Tesla Cybertruck account on social network X announced on Thursday that the truck had become the best-selling fully electric pickup in the U.S. in the second quarter.

In the second quarter, Ford reported sales of its fully electric F-150 Lightning model totaling 7,902. Through June of this year, sales of the F-150 Lightning have reached 15,645.

Tesla didn't respond to a request for more information.

Tesla's Robotaxi Day, scheduled for early next month, is expected to serve as a catalyst for the stock, according to a note from Cantor Fitzgerald analysts on Tuesday.

"TSLA has previously disclosed plans for a Robotaxi (or Cybercab), which the company plans to unveil on August 8. Although we don't anticipate this segment launching before 2027, we believe it will be a significant business segment for the company in the long run."

Although Cantor Fitzgerald anticipates Tesla will produce fewer vehicles in 2021 compared to the previous year, the firm maintains a $230 price target for the stock and advises investors to purchase it.

Although Tesla has recovered, it is still trailing the broader market by 15.8% in 2024. The Nasdaq has increased by 22%, while the S&P 500 has grown by 17%. Tesla's current growth rate is 1.2%.

The recent Axios-Harris poll revealed that the company is facing brand deterioration, which can be attributed to Musk's "antics" and "political rants." Additionally, a New York Times survey this week stated that Musk's "polarizing statements" and "political activity" are driving away some "left-leaning consumers."

Despite Musk's announcement in October 2016 that all Tesla cars produced at that time had the necessary hardware to make them self-driving, the company is still years behind in delivering the software that would enable this feature. In late June, Musk revealed that another hardware and sensor setup is needed to achieve self-driving capability.

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