Tesla (TSLA) had a good week in the stock market, closing up 5.5% on Friday and ending a long losing streak that had been going on since 2021. The reason behind this increase may have been the news that Tesla delivered 75,842 China-made vehicles in April, which was a considerable jump from the previous year when they only delivered 1,512 vehicles due to COVID-19 lockdowns and parts shortages.
The disappointing earnings release last month had put pressure on Tesla's shares, as investors were concerned about margin pressure caused by a series of price cuts that occurred in Q1 and the start of Q2. However, Tesla reversed some of those price cuts by slightly raising the prices of the Model Y and Model 3 in China, the US, Canada, and Japan. On Friday, Tesla also increased the prices of its most expensive cars in China - the Model X and Model S - by 19,000 yuan, or $2,751 each, to place them further above its Model 3 and Model Y cars in the mainland.
This move could be an attempt to differentiate Tesla's luxury offerings from its more affordable models. Tesla's stock has been under pressure due to the recent five-week losing streak, but this week's performance has helped to break that trend. According to Investors' Business Daily, if Tesla had not performed well on Friday, it would have been the company's longest weekly losing streak since March 2021.
Tesla's stock may have also received a boost from the broader market, which experienced a risk-on rally following the better-than-expected April jobs report. The Nasdaq closed well over 2%, and the S&P 500 finished the day up 1.85%.
In conclusion, Tesla's recent delivery numbers and price adjustments have positively impacted the company's stock, and the broader market's risk-on rally may have also contributed to its recent success. However, investors will continue to monitor Tesla's financial performance and watch for any future developments that could impact the company's stock.
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