In a remarkable turnaround, Tesla's stock has staged an impressive rally, erasing its losses for the year and finishing the week with a 27% gain. The surge comes on the heels of the automaker's better-than-expected second-quarter vehicle deliveries report, which topped Wall Street estimates.

Closing at $251.55 on Friday, Tesla shares bounced back from a low of $138.80 in April, ending last year at $248.48. The recent surge in stock price was ignited by optimism surrounding the second-quarter deliveries report. Although deliveries were down 4.8% from the previous year, the decline was less steep than in the first quarter, giving investors reason to be hopeful for the second half of 2023.

Tesla's resilience in the face of earlier challenges is evident. The company experienced a string of setbacks, including declining sales in the first quarter, significant layoffs, and reports of scrapped plans to produce a low-cost family car at its Texas factory. April saw Tesla shares hit their lowest point in a year.

The upcoming focus now shifts to Tesla's second-quarter financial results, which are set to be released on July 23. Particularly of interest will be the automotive gross margins, as the company has been offering discounts and incentives to entice customers to purchase its aging lineup of electric vehicles.

Notably, Tesla's Cybertruck has gained momentum in the second quarter of 2023. An account on social media platform X claimed that the Cybertruck became the bestselling fully electric pickup in the U.S., outperforming Ford's F-150 Lightning, which reported sales of 7,902 in the same period.

Looking ahead, Cantor Fitzgerald analysts anticipate Tesla's Robotaxi Day, scheduled for early August, to serve as a catalyst for the stock. While they do not expect the Robotaxi segment to launch before 2027, the analysts believe it will become a significant segment for Tesla in the long run.

Despite its recent rebound, Tesla still lags behind the broader market. While the Nasdaq has gained 22% and the S&P 500 has risen by 17% in 2023, Tesla's stock is up only 1.2%.

However, there are concerns looming over the company. A recent Axios Harris poll indicated that Tesla is experiencing brand deterioration, partly attributed to CEO Elon Musk's "antics" and "political rants." A survey published in The New York Times this week also suggested that Musk's controversial statements and political activities are alienating some left-leaning consumers.

Furthermore, Tesla is facing delays in delivering self-driving capabilities promised years ago. Despite Musk's announcement in 2016 that all Tesla cars produced at that time had the required hardware for self-driving, the company is still working on the necessary hardware and sensor setup.

While challenges persist, the recent surge in Tesla's stock price and the promising second-quarter deliveries report have provided a boost of optimism for the electric vehicle manufacturer. As it prepares to reveal its financial performance for the second quarter, all eyes will be on Tesla's continued progress and growth.