According to media reports, on June 14th, Tesla's stock price declined slightly by 0.7% to $256.79, ending its record-breaking 13-day consecutive growth trend. The decline was attributed to the hawkish stance of the Federal Reserve and weakening market technical factors that dampened its upward momentum.
Since the end of May, Tesla's market value has increased by over $240 billion, reaching a staggering ¥10 trillion, pushing Tesla into the so-called "overbought" zone, which typically signals an impending stock price correction for the company.
Since November 2021, Tesla's stock price has not experienced such a severe overbought phenomenon, which occurred during the peak of a widespread bull market frenzy for electric vehicle stocks.
The recent surge in Tesla's stock price has been accompanied by a broader frenzy in investments related to artificial intelligence, easing concerns about a severe economic downturn, and a series of positive news surrounding Tesla. Positive news surrounding Tesla includes the charging agreement with traditional competitors General Motors and Ford, as well as the eligibility of all Tesla Model 3 variants for full electric vehicle tax credits in the United States. On June 13th, the release of inflation data by the US government showed a cooling trend, triggering a relieving rebound in the market and further boosting Tesla's stock price.
In a report issued on the evening of June 13th, Morgan Stanley analyst Adam Jonas wrote, "We believe the market wants to believe Tesla is an AI company first and an automotive company second. While we did not anticipate the recent surge in Tesla's stock price, we question whether many investors will once again seek to rationalize Tesla's market capitalization surpassing valuations based on an automotive/hardware per unit price model."
