TSLA stock outperformed major indices this week, gaining 7.8% while the S&P 500 rose 2.7% and the Nasdaq composite rose 2.4%. The move marked TSLA's biggest weekly gain since early April.
Electric Vehicle Adoption
Electric vehicles (EVs) have been in focus on Wall St. throughout the week as new forecasts were published by Ernst & Young and Piper Sandler regarding EV adoption. Ernst & Young believes EV sales will surpass fossil-fuel vehicle sales in 2033, five years earlier than the firm had previously forecast. Piper Sandler expects EVs to take 45% market share by 2030, grabbing majority share shortly thereafter.
On Thursday, President Biden announced his support for the "Bipartisan Infrastructure Framework" which proposes $15 billion to be allocated for EV charging stations and electrification of buses. While an update to the EV federal tax credit is not a part of the infrastructure framework, it's too soon to conclude that a change won't be made. President Biden has been vocal that the infrastructure framework is only one component of a broader legislative agenda:
"Sure, the bipartisan bill was — look, the bipartisan bill, from the very beginning, was understood there was going to have to be the second part of it. I’m not just signing the bipartisan bill and forgetting about the rest that I proposed. I proposed a significant piece of legislation in three parts. And all three parts are equally important."
Early this week, Tesla revealed new information about their progress on autonomous driving. Following the recent removal of radar from their vehicle sensor suite, Tesla’s head of AI, Andrej Karpathy, explained the decision at a computer vision conference and offered insight into Tesla’s development over the last few months.
Karpathy highlighted how Tesla's vehicle fleet allows them to collect a tremendous amount of data, around 1.5 petabytes (1,500 terabytes) worth of video over the last four months. To manage such a large amount of data, Karpathy estimates Tesla has developed the 5th most powerful supercomputer in the world. Tesla appears ready to add even more computing power as they work to complete "Project Dojo", a supercomputer they believe will help them further automate neural network training.
Tesla CEO Elon Musk is expected to share more details on Dojo at a Tesla AI Day later this year.
Tesla is expected to report Q2 delivery and production numbers next week after the quarter ends Wednesday. Generally, Tesla reports results two to three days after a quarter ends.
Last quarter, Tesla delivered a record 184,800 vehicles, and Wall St. expects another record quarter in Q2. Investors and traders may be positioning for the report as TSLA's volume rose more than 40% on the week.
On Friday, Tesla again raised prices on the Model Y in the United States. The Long Range version increased by $500 to $52,990, the sixth price increase on the vehicle in the second quarter alone. Investors will be curious to see Tesla's Q2 earnings report to get a better understanding of the reasons behind the consistent pricing adjustments.
What did you think was the biggest news of the week? What are you watching for next week? Let us know on Twitter, @teslapodcast.
Disclosure: Rob Maurer is long TSLA stock and derivatives. Assistance by Brennan Ertl.