That is The Takeaway from right this moment’s Morning Temporary, which you’ll be able to signal as much as obtain in your inbox each morning together with:If Tesla (TSLA) is usually a tech firm when automobile gross sales falter, absolutely it may be a automobile firm when gross sales exceed expectations. That’s how Wall Avenue sees it, as Tesla bulls are as soon as once more ascendant.Over the past week, Tesla shares have surged greater than 25%, boosted by automobile deliveries that beat estimates, leaving the paltry positive aspects of the remainder of the “Magnificent Seven” within the mud.When CEO Elon Musk insisted earlier this yr that Tesla isn’t a automobile firm, the message jolted the inventory worth at the same time as gross sales faltered. Whereas handy, the pitch was true sufficient. And the edict apparently goes each methods.The inventory surge speaks to the facility of touting an industry-leading product — a lesson for AI startups — and the good thing about making AI ambitions part of a broader marketing strategy, somewhat than the only side of it. However conversely, it underscores that Tesla’s heady AI targets are nonetheless carefully tethered to its automobile gross sales.Combining lofty techno-ambitions with shifting vehicles off heaps has been key to Musk’s salesmanship.“In a nutshell, the worst is within the rear-view mirror for Tesla as we imagine the EV demand story is beginning to return to the disruptive tech stalwart,” outspoken Tesla backer Dan Ives of Wedbush Securities wrote in a be aware earlier this week.The upbeat supply information counters a wave of unfavourable sentiment.Pushed by stiffening competitors in China, softening demand at house, worth cuts, layoffs, and Musk’s authorized and company dramas, Tesla had limped alongside as a Magnificent Seven laggard. However current wins have a manner of erasing earlier losses. And Tesla is now using a string of victories, with an earnings report and a much-hyped robotaxi unveiling simply across the nook.Traders are shopping for into the shifting temper. Since a low in late April, Tesla is up greater than 60%.However even some Tesla backers are poking holes within the newest rally. It’s true Tesla beat expectations, however gross sales fell from the identical interval final yr. And the way have extra aggressive rivals and cheaper costs eaten into profitability?“In actuality Tesla EV gross sales had been down 5% and the corporate appears to be capitulating to the thought of promoting EVs. It’s all about FSD and taxis now,” mentioned Ross Gerber, CEO of Gerber Kawasaki Wealth & Funding Administration, referring to Full Self-Driving.In some methods, Tesla’s versatile id as a automobile firm when occasions are good and a tech firm when the chips are down is usually a hindrance to a transparent company technique. Is Tesla nonetheless gunning for a mass-market EV in each household’s driveway? Or is it a platform orchestrating a fleet of autonomous taxis increasing the frontier of AI know-how?Story continuesIt may be each, in fact. And Musk is susceptible to wanting all of it. Traders don’t appear to thoughts which metaphorical cap the corporate is carrying on any specific day. Simply so long as the numbers go up. AI could make that occur. And, for now, so can vehicles.Hamza Shaban is a reporter for Yahoo Finance overlaying markets and the economic system. Comply with Hamza on Twitter @hshaban.morning transient imageClick right here for the newest inventory market information and in-depth evaluation, together with occasions that transfer stocksRead the newest monetary and enterprise information from Yahoo Finance