Tesla shares looked set to rise for a fifth day in a row on Wednesday. However, this streak does not mean the electric-vehicle maker is out of the woods after a tough period.
Before the market opened, Tesla shares edged up slightly, moving in step with the broader market as investors waited for the July consumer price inflation report.
Tesla has finished higher for four days in a row, gaining over 4% during that time. Still, the stock is down 26% for the year as worries continue about lower profits and high spending on the company’s shift to AI.
There does not seem to be a clear reason behind the recent gains. The rise may just be due to dip-buying in a usually quiet summer trading period with lower trading volume.
Tesla stock is still expensive. By Tuesday’s close, it was trading at about 197 times expected 2026 earnings, which is over 10 times higher than its five-year average. Unless the company shows it can increase car sales or get results from its AI investments, the recent rally may not last.
