Tesla's 9-Day Winning Streak In Question As Nvidia, Apple, Microsoft, And Other Mag 7 Stocks Rise, Foreca

　　Editor‘s Note:The corrected version of the story includes Gary Black’s quote questioning the possibility of Teslas streak extending to 9 days.

　　Amid a remarkable 8-day winning streak for Tesla IncTSLA, a prominent investor has questioned the possibility of the streak extending to 9 days.

　　What Happened: Gary Black, Managing Partner at The Future Fund, took to social media platform, X to express his thoughts on the recent surge in Teslas stock. “It's hard to predict whether $TSLA can make it 9 consecutive up days tomorrow,” Black wrote.

　　Black highlighted the company‘s impressive performance over the past 8 days, with a 36% increase compared to the Nasdaq 100’s 4% rise. He also noted that all of the “Magnificent 7” stocks, including Apple IncAAPL, Amazon.com IncAMZN, Meta Platforms IncMETA, Alphabet IncGOOG GOOGL, Microsoft CorpMSFT, and NVIDIA CorpNVDA, have seen positive growth during this period.

　　Black further suggested that Wall Street analysts might revise their earnings estimates and price targets following Teslas second-quarter earnings report, which is expected to reflect higher-than-anticipated auto gross margins and adjusted EPS.

　　He also pointed out a potential shift in Teslas 18-month trend of negative earnings revisions, as the company now seems to be favoring low-interest-rate loans over price cuts to drive EV volumes.

　　“The biggest positive we see is that TSLA's 18-month trajectory of negative earnings revisions seems about to reverse, with TSLA now favoring use of very low int rate loans instead of price cuts to drive EV volumes, a strategy we've advocated for 18 months,” Black wrote.

　　Black also mentioned a crucial hearing scheduled for the next day, where a judge will consider attorney fees before a more significant hearing in August regarding the approval of Elon Musks 2018 compensation plan by Tesla shareholders.

　　“We continue to view TSLA's 8/8 robotaxi unveil as a non-event, since we doubt TSLA will launch an unsupervised robotaxi that operates at 99.99% efficacy and assume liability for any injury or damage. Anything less than that is essentially no change from investors' current expectations of a supervised Cybercab unveil,” Black wrote.

　　Why It Matters: Despite the bullish sentiment, some analysts remain skeptical. Gordon Johnson, founder of GLJ Research, recently expressed his bearish outlook on Tesla, citing declining margins and slower growth in car sales. Johnson believes Teslas stock is overvalued and could eventually fall below $30 per share.

　　Additionally, Jim Cramer, host of CNBC‘s “Mad Money,” has advised investors to buy the “Mag 7” stocks when interest rates rise and to buy everything when rates fall. Cramer’s strategy reflects the markets resilience and the significant role these tech giants play in driving market trends.

　　On the other hand, Wedbushanalyst Dan Ives recently raised Tesla‘s price target to $300, with a bullish case of $400, driven by the company’s AI potential. Ives believes Teslas AI story could be worth over $1 trillion, making it the most undervalued AI name.

　　Price Action: Tesla Inc stock last closed at $251.52, up 2.08%. In after-hours trading, the stock dipped 0.20%. Year to date, Tesla has seen a modest increase of $3.10, reflecting a 1.25% gain, according to Benzinga Pro.

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　　This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote

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