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Monday, July 22, 2024

Why Monday’s jump in Tesla Stock

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As the business gets ready for its upcoming Investor Day on March 1, Tesla’s (TSLA 0.59%) shares are higher on Monday. The stock increased by about 6% and was still up 4.6% as of 11:10 a.m. EDT on Monday.

Investors are eager to learn what the firm has in store for them on Wednesday in terms of brand-new technologies and goods, including possible updates on autonomous taxis and a more affordable mass-market vehicle. The stock, however, may be soaring today due to events occurring outside of its native market in the United States.

Electric vehicle (EV) sales are dominated by the Chinese and European markets globally, and Tesla received encouraging news from both today. According to Reuters, Tesla is currently producing 4,000 vehicles per week ahead of schedule at its expanded German production facility. Li Auto, a Chinese manufacturer of electric vehicles, recently provided investors with an update, and the company’s optimistic forecast for the near future is good news for Tesla as well.

Just over 15,000 of Li’s electric vehicles were delivered in January, but the company expected first-quarter deliveries to reach between 52,000 and 55,000. That suggests that the average monthly amount for February and March was around $19,000. Li’s previous monthly record was reached by that volume in December 2021. The COVID-19 lockdowns’ effects on customer demand and production led to sales difficulties for the majority of Chinese EV manufacturers last year. If that damage is finally behind us, it’s fantastic for Tesla’s Chinese sales.

The largest volume-producing facility for Tesla is located in Shanghai, China. Also, it has supplied European customers from that factory. The company is more likely to meet its goal of a 50% annual expansion in deliveries after learning that its German manufacturing is several weeks ahead of schedule with production ramp-up.

Based on that information as well as prospective updates the firm may offer on Wednesday, Tesla investors are purchasing the stock today.

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