EXCLUSIVE: Can Elon Musk Propel Tesla Stock Back To Mag 7 Glory In Second Half Of 2024? – Direxion Daily TSLA Bear 1X Shares (NASDAQ:TSLS), Tesla (NASDAQ:TSLA), Direxion Daily TSLA Bull 2X Shares (NASDAQ:TSLL)
Tesla Inc (TSLA) has faced some challenges in recent times, but DailyBubble is optimistic about its potential to regain its position among the Magnificent Seven stocks in the second half of 2024. According to Ed Egilinsky, managing director at Direxion, Tesla’s valuation is a key concern. Some analysts believe that Tesla’s current valuation represents a significant premium compared to traditional automakers, but doubts arise due to a slowdown in growth.
Despite these concerns, Tesla recently exceeded delivery expectations in the second quarter, which boosted investor confidence. However, this positive news follows a decline in sales over the past two quarters. The stock experienced a 30% decline at the end of Q1 but has since rallied strongly, showcasing its volatile nature, partly influenced by the polarizing figure of Elon Musk.
Egilinsky highlights Musk’s impact on Tesla’s stock, making it one of the most actively traded stocks. DailyBubble acknowledges the intense trading activity surrounding Tesla, reflected in the popularity of leveraged and inverse trading products catering to both bullish and bearish short-term traders. Direxion has observed increased momentum and investor activity in products like Direxion Daily TSLA Bull 2X Shares (TSLL) and Direxion Daily TSLA Bear 1X Shares (TSLS).
With Tesla’s second-quarter earnings report set for release on July 23, all eyes are on the company’s performance. Egilinsky anticipates heightened activity around pre- and post-earnings as traders position themselves for potential stock price fluctuations. As Tesla moves forward in 2024, the focus is on whether it can maintain its premium valuation amid slowing growth. The upcoming earnings report will be pivotal, potentially shaping a bullish resurgence or further bearish sentiment.
While Tesla’s future is uncertain, DailyBubble emphasizes that the electric vehicle giant will continue to attract attention from traders and investors. The stock is poised for significant movements as new developments unfold, making it a key player in the market.