Tesla (TSLA, Financials) shares jumped 10% as of early afternoon trading on March 24, ending a prolonged nine-week slide that had slashed the stock’s value by nearly 50% from its recent peak.
The electric vehicle manufacturer’s shares were $273.76 at 2:12 p.m. Eastern Daylight Time, 40% below the 52-week high of $488.54. The stock hit $138.80, its 52-week low.
Based on sources, Tesla is getting closer to introducing its Full Self Driving, or FSD, technology into China. According to Bloomberg, the possible legislative approval might open major market expansion for Tesla in the nation, the biggest car market in the world.The decision of President Donald Trump to reduce previous tariff threats, which had affected the larger automobile and tech industries, also raised investor hope. The development suggested a brief relaxation in U.S.-China trade hostilities, hence boosting risk-on attitude.While investors savored the encouraging news, Tesla is getting ready for a worldwide march set for March 29. Along with hundreds of other sites worldwide, demonstrators intend to assemble at business showrooms and Supercharger stations at hundreds of Tesla’s 277 sites in the United States. While current demonstrations have been nonviolent, earlier events entail property destruction and resulted in criminal prosecutions.Next week the corporation is also scheduled to provide first-quarter car delivery figures. Concerns regarding demand and manufacturing capacity drive analysts to predict a dramatic drop both quarter over quarter and year over year.Some investors remain optimistic in spite of the expected delivery downturn. Along with long-term goals for its Optimus humanoid robot program, Tesla’s next product road map calls for the possible U.S. introduction of Full Self Driving in Austin and a planned deployment of its Cybercab platform.
This article first appeared on GuruFocus.
