Tesla’s stock is on a 7-day winning streak, with shares surging more than 3% in premarket trading. This winning streak is the longest since last year and has been attributed to the street recognizing Tesla as a highly undervalued AI play. Analysts are optimistic about Tesla’s future, especially with an upcoming Robotaxi Day on August 8th that could pave the way for a fully autonomous future. Wedbush analyst Dan Ives has given the stock an outperform rating, highlighting the potential for Tesla to lead in the AI market.
The consumer discretionary sector closed at its highest level since January 2022, driven by a 10.2% surge in Tesla’s shares. This increase was fueled by Tesla’s impressive second-quarter vehicle production and delivery reports, which exceeded analyst expectations. E-commerce giant Amazon also contributed to the sector’s gains, reaching a new all-time high. Consumer discretionary was the top-performing sector in the S&P 500 on Tuesday, propelling the broader market index to a record close above the 5,500 threshold.
In other news, Paramount saw a 9% rally following news of reignited merger talks with Skydance Media. This development comes after talks for a deal were called off in June, sparking renewed investor interest in Paramount. While Paramount declined to comment on the news, National Amusements and Skydance did not immediately respond to requests for comment. Overall, the market continues to show signs of optimism and potential for growth in various sectors.