Will Cybertruck Launch Drive The Next Leg Of Tesla Stock’s Rally?

Tesla
TSLA
stock has done exceedingly well, rising by over 93% year-to-date . While Tesla’s deliveries have surged driven by price cuts to popular models, with revenue surging by 47% in the most recent quarter, Tesla plans to open up its supercharger network and potentially license its full self-driving technology to third-party automakers. Tesla is also prepping for the big launch of its cyber truck pickup after over two years of delays. So will the new electric truck drive the next leg of Tesla stock’s rally?

We note that TSLA stock has had a Sharpe Ratio of 0.9 since early 2017, which is better than 0.6 for the S&P 500 Index over the same period. This compares with the Sharpe of 1.3 for the Trefis Reinforced Value portfolio. Sharpe is a measure of return per unit of risk, and high-performance portfolios can provide the best of both worlds.