Tesla Powers Up, But Clean Energy Stocks Are Stuck In Death Cross Rut

Tesla Inc. TSLA has been riding a wave of mixed fortunes in 2024. The electric vehicle giant is down more than 19% year-to-date, but recent gains of about 3% over the last month have offered some respite.

The company’s second-quarter earnings report on July 23 brought a glimmer of hope. Revenue hovered at around $25.5 billion — a modest 2% increase year-over-year — beating Wall Street’s expectations of $24.73 billion, according to Benzinga Pro.

However, Tesla’s earnings per share (EPS) told a different story, falling 43% year-over-year to 52 cents. They missed the Street’s consensus estimate of 62 cents. Despite the earnings miss, the stock found a technical lifeline, forming a Golden Cross on July 29.

Chart created using Benzinga Pro

A Golden Cross occurs when the 50-day moving average crosses above the 200-day moving average, signaling a potential bullish trend. This pattern has sparked optimism among investors, suggesting Tesla could be poised for a rebound.

While Tesla is basking in the glow of its Golden Cross, the broader clean energy sector isn’t faring as well.

Enphase Energy Inc. ENPH, a leader in energy management technology, is down 15.69% YTD and teetering on the brink of a Death Cross.

Chart created using Benzinga Pro

This bearish signal, where the 50-day moving average falls below the 200-day moving average, indicates potential further declines.

Blink Charging Co. BLNK, another key player in the EV space, is also struggling.

Chart created using Benzinga Pro

With its stock down 35.49% YTD, Blink is rapidly approaching a Death Cross, casting a shadow over its short-term prospects.

The iShares Global Clean Energy ETF ICLN, which tracks the performance of clean energy companies worldwide, has already succumbed to a Death Cross, reflecting the sector’s broader struggles.