Tesla's stock is experiencing a notable surge on December 23, 2024, driven by several key factors. The company's robust performance in its Energy Generation and Storage business, particularly with its Megapack and Powerwall products, has been a significant contributor to its growth trajectory. This segment has shown a compound annual growth rate of 120.7% over the past three years, highlighting its profitability and strong market reception. Additionally, Tesla's strategic expansion into AI and autonomous vehicle technology, including its Full Self Driving (FSD) capabilities, has bolstered investor confidence. The anticipation of Tesla's Robotaxi launch, which promises to revolutionize the transportation industry, further fuels optimism about the company's future prospects.
Moreover, the broader economic environment is also playing a role in Tesla's stock performance. The Federal Reserve's decision to reduce benchmark interest rates three times in the latter half of the year has lowered vehicle financing costs, which is expected to boost future demand for electric vehicles. Despite challenges in the EV market, Tesla's vertically integrated business model and its ability to maintain healthy margins through disciplined cost management have positioned it well for continued growth. The company's strong sales of Model 3 and Model Y vehicles, along with its innovative approach to energy storage and AI, continue to attract positive attention from investors and analysts alike.
The Graniteshares 2x Long TSLA Daily ETF (TSLR) is currently priced at $49.74, reflecting a 4.34% increase from the previous close.