Tesla’s stock (TSLA) is up more than 50% over the past month in one of the company’s best runs ever.
It can be guessed from here why Tesla’s stock is rising.
Macroeconomics has a big impact on big stocks like Tesla, and improvements on that front have helped the automaker, but the NASDAQ is up 10% while Tesla is up 51% over the past 30 days.
A series of good news seems to have helped Tesla move faster than the rest of the market.
Tesla’s NACS is adopted
More recently, the adoption of NACS, which is Tesla’s connector, as the new North American charging standard has resulted in many Wall Street analysts looking down on Tesla’s supercharger business.
With the Connector being adopted by GM and Ford’s electric vehicles to take advantage of Tesla’s Supercharger network, analysts expect Tesla to start making billions of dollars a year in revenue from its charging business by the end of the decade.
In addition to the potential revenue from the Supercharger network, the adoption of NACS also validates Tesla’s approach to charging. Also, if NACS is adopted as a unified charging standard, it should help the overall EV market in North America.
Tesla calms down with price change
The other thing that’s helping Tesla’s stock is that confidence in demand for Tesla’s vehicles is improving — mainly due to the fact that Tesla has slowed down its relentless price changes over the past month. .
Tesla still discounts some inventory vehicles, but this primarily affects Model 3 vehicles — leading us to believe that the automaker may be liquidating inventory ahead of the Model 3 refresh.
With the end of the quarter and Tesla not aggressively changing prices again, this is giving the market more confidence in demand for Tesla’s vehicles.
The fact that Tesla somehow got access to the full tax credit on its base Model 3 didn’t hurt either.
What else do you think is contributing to Tesla’s stock run? Let us know in the comment section below.
FTC: We use automatic affiliate links to generate income. More.