Tesla snaps six straight sessions of losses

Tesla (NASDAQ:TSLA) shares snapped six straight sessions of losses, as the stock closed 3.5% higher to $251.44 on Tuesday.

Wall Street’s major equity averages pushed higher on Tuesday, as voting began in a tightly contested presidential election in the U.S. Tesla’s move appears to be tied to election bets.

Meanwhile, the company was also awarded a patent on Tuesday for creating a system and method that could lead to licensing autonomous driving technology.

Last month, Tesla’s earnings beat impressed investors, helping the stock close down nearly 22% higher on Oct. 24. According to data compiled by Bespoke Investment Group, this is the best reaction day since Oct. 24, 2019, when it rallied 17.67%.

However, the stock experienced a fall since Oct 28. The EV maker lost over 7% in the preceding six sessions. The stock closed 2.5% lower on Monday.

Seeking Alpha’s Quant ratings consider the stock a Hold, with a score of 3.47 out of 5. The company got A+ in the prospect of profitability, while its score was dragged down by a C in growth and an F in valuation factor.

Looking at Wall Street, 18 analysts in the last 90 days rated the stock a Buy and above, 19 gave Hold, while 11 recommended Sell and lower. Seeking Alpha analysts are also cautious and rated it a Hold.

“Tesla, Inc.’s automotive sales are resilient vs. amidst a challenging backdrop in the industry. The rollout of affordable models in H1 FY25 are a key volumes catalyst,” pointed out a recent Seeking Alpha analysis by Hunting Alpha.

However, another analysis pointed out that given the company’s “track record of missed timelines and reliance on ambitious tech projections,” the stock valuation carries considerable risk for investors.

Tesla is up 6% over the past one month. Overall, the stock gained 2% so far this year, compared to the near 20% rise in the broader S&P500 Index.