Tesla (TSLA) stock soared to close up 5.5% on Friday, ending the week in the green and snapping its longest losing streak since 2021.
Boosting shares may have been news out of China, where the China Passenger Car Association reported Tesla delivered 75,842 China-made vehicles in April, a figure that was down 14.7% compared to March, but was a considerable jump from a year ago when Tesla delivered only 1,512 vehicles due to COVID-19 lockdowns and parts shortages that hampered production.
Tesla shares have been under pressure since the electric-vehicle maker’s disappointing earnings release last month, where margin pressure was a concern for investors. The margin pressure stemmed from a series of price cuts that occurred in Q1 and the start of Q2.
Tesla did reverse some of those price cuts just this week, when it slightly raised the prices of the Model Y and Model 3 in China, the US, Canada, and Japan. However on Friday Tesla jacked up prices of its most expensive cars in China – the Model X and Model S – by 19,000 yuan, or $2,751 each. Tesla may be raising the prices of its luxury offerings to place it further above its Model 3 and Model Y cars in the mainland.
Tesla’s jump today has the stock notching a 3.5% gain this week, snapping what would have been a 5-week losing streak if not for today’s performance. According to Investors’ Business Daily a fifth straight weekly loss would have been Tesla’s longest weekly losing streak since March 2021.
Tesla shares may also be getting a boost from the broader market, which is experiencing a risk-on rally following the better than expected April jobs report. The tech-heavy Nasdaq closed well over 2%, with the S&P 500 finishing the day up 1.85%.
Pras Subramanian is a reporter for Yahoo Finance. You can follow him on Twitter and on Instagram.
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