Tesla Inc (NASDAQ: TSLA) stock has had a rollercoaster ride for the better part of the year so far, and over the past seven sessions, the stock has roared back after having gone through a bit of a slump. The electric vehicle manufacturer saw its stock rally by as much as 55% over the course of the last seven sessions.
Analysts Are Bullish
TSLA stock has continued to gain ever since it released its delivery report for the first quarter, and an upgrade from Credit Suisse further added to the momentum. This morning, the Tesla stock rose by as much as 8.1% in premarket trading, and that reflects a rise in excess of 50% in the past seven sessions.
It should also be noted that it is the longest streak of gains recorded by the Tesla stock since October last year. Considering the sort of gains made by the stock in recent days, it is worthwhile for investors to take a closer look at what is driving this remarkable rally.
According to Credit Suisse analyst Dan Levy stated that the company enjoys a competitive edge over most of the established automobile makers in the market due to the onset of the coronavirus crisis. Levy stated that most of the legacy auto companies are now focussed on the near term due to their debt levels.
However, that is not the case with Tesla. The company is solely interested in manufacturing electric vehicles and has an eye on the long term. Hence, Tesla enjoys this crucial competitive advantage over legacy players in the automobile industry, and that could be one of the major reasons why the stock is climbing. That being said, it should also be mentioned that the coronavirus pandemic had affected the Tesla stock considerably as well. Since hitting its record high back on February 19, TSLA stock had slumped by as much as 60%.