Today’s Change
(3.53%) $12.98
Current Price
$380.94
Key Data Points
Market Cap
$1.4T
Day’s Range
$373.03 – $385.33
52wk Range
$214.25 – $498.83
Volume
4.5M
Avg Vol
61M
Gross Margin
18.03%
EV maker Tesla (TSLA +3.53%) closed Monday at $380.83, up 3.50%. The stock moved higher as investors weighed fresh analyst downgrades and delivery cuts against news surrounding Tesla’s artificial intelligence (AI) strategy.
Trading volume reached 72.6 million shares, coming in nearly 18% above its three-month average of 61.3 million shares. Tesla IPO’d in 2010 and has grown 23,852% since going public.
How the markets moved today
The S&P 500 (^GSPC +1.15%) advanced 1.16% to finish at 6,582, while the Nasdaq Composite (^IXIC +1.38%) climbed 1.38% to close at 21,947. Among automobile manufacturing peers, Ford Motor Company (F +2.13%) closed at $11.76 (+2.08%) and General Motors (GM +4.00%) finished at $75.72 (+4.00%) as investors assessed sector safety and demand trends.
What this means for investors
Over the weekend, CEO Elon Musk revealed the Terafab initiative, outlining plans for a semiconductor manufacturing facility. This project will be a collaboration between Tesla, xAI, and SpaceX, with the early phases projected to require an investment in the tens of billions of dollars.
Investors balanced those future plans with an analyst downgrade and $150 price target. Trip Chowdry with Global Equitites Research cited concerns over its AI strategy for the downgrade. Analysts at UBS (UBS +2.21%) also cut Tesla delivery forecasts and reports flagged mounting regulatory probes.
Many investors still want to own Tesla stock based on future potential and plans touted by Musk. Weakness in the EV business itself hasn’t been what is driving its shares. That looked to be true again today.
Howard Smith has positions in Tesla. The Motley Fool has positions in and recommends Tesla. The Motley Fool recommends General Motors. The Motley Fool has a disclosure policy.
