Investors are betting on the promise of artificial intelligence in hopes of success for Tesla’s self-driving taxi technology.
Shares of Tesla Inc showed rapid growth. In particular, the company’s share price has jumped 44% in the past 11 days, which is the longest winning streak since June 2023. Bloomberg reported this on Thursday, July 11.
The last time the company’s shares rose this much, it was supported by mixed earnings growth. However, now things look darker. Sentiment around electric cars is muted and Tesla sales are declining.
The company’s shares are currently trading at 90 times expected earnings.
Investors blamed the increase on bets on Musk’s ability to turn Tesla into a leader in artificial intelligence.
They look forward to the success of Tesla’s self-driving taxi technology, believing it will strengthen the company’s position in the field of artificial intelligence. Elon Musk will present new technology on August 8th.
In turn, analysts expect Tesla’s earnings to fall 21% in 2024, while revenue growth will slow to 2.2%.
Earlier, the capitalization of the American electric vehicle manufacturer Tesla fell by 2.3% to $553 billion, which is why the company dropped to 11th place on the list of the most valuable companies in the United States.
We reported that Tesla shareholders voted to approve a $56 billion pay package for the company’s CEO Elon Musk, as well as moving the electric car manufacturer’s headquarters to Texas.
American entrepreneur and founder of Tesla and SpaceX Elon Musk lost the title of the richest man in the world to Amazon founder Jeff Bezos.
Source: korrespondent
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