Mike Blake/Reuters
Comeback kid!
- After dropping below $200, Tesla shares last week moved above that mark again, on news that Q2 sales would be better than Q1.
- Several years ago, Tesla endured a pattern of falling stock prices at the beginning of the year, followed by recoveries by the year-end. That pattern is reasserting itself.
- With some of the noise fading around CEO Elon Musk's antics and the war between Tesla longs and shorts cooling off, the company's dominant position in the EV market is becoming more important.
- Visit Business Insider's homepage for more stories.
Has the Tesla recovery begun? It sure looks like it, if you watched the stock price, hammered down below $200, bounce back last week.
Who knows if shares will rally, but if history is a guide, the stock had fallen too far, too fast. Now the bargain-hunters have moved in, recalling prior comebacks.
Read more: Tesla's tanking stock price is actually the best thing that's happened to the company recently
Tesla isn't a stock for the weak-minded, obviously. It's wildly volatile, enduring huge swings over short periods of time. It also trades on any scrap of news that crosses the radar.
But over the years, the company has established some fundamentals. Right now, the biggest of these is that Tesla dominates the small but growing electric-car market. There are people out there who want EVs, and Tesla is there to sell them. The competition is unenthusiastic, so Tesla should enjoy this market advantage for a little while longer.
In fact, there are a few reasons why Tesla is poised for a recovery. Here's a rundown:
Get the latest Tesla stock price here.