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Shares of Tesla are rising, while the general market is trading lower on Tuesday.
Andrew Caballero-Reynolds / AFP via Getty Images
It’s an idle day for the market, though
Tesla
actions continues its recent execution. Finding out why is not easy.
He
S&P 500
it lost 0.3% on Tuesday. He
Dow Jones industrial average
gave up about 0.8%. Shares of Tesla (ticker: TSLA), on the other hand, gained 2.6%. What does it give?
The most important reason does not appear to be a new bullish analyst or an official statement from the company. The reason seems to be new, even for Tesla. Growing optimism is based on tweets about an email that may or may not be real.
It appears CEO Elon Musk may have written an email to employees supporting Cathie Wood’s $ 3,000 price target for Tesla shares. ARK Invest’s Wood believes the goal can be achieved by 2025. Musk believes the price is possible if Tesla runs “very well,” according to the email.
It is not known if Musk sent the email or not. Tesla did not respond to any requests for comment. Whether it was, or not, is debatable for investors on Tuesday. Stocks are rising again as history circulates.
Tesla’s solid performance will likely open up new manufacturing and battery capacity on time. Tesla opens two plants – one in Texas and one in Germany – this year. The company wants to grow unit volumes by 50% in the foreseeable future. Part of this growth will be to expand product lines to more vehicle segments. Tesla has hinted at a $ 25,000 vehicle for a while. It would probably arrive around 2023.
Tesla should also make significant progress with its autonomous driving software. Wood believes Tesla may have a fleet of autonomous robotaxis by 2025. This business is one of the main reasons for its bullish price target.
Achieving complete autonomous driving technology, to the level that would allow driverless cabs, is not a given fact. And other car companies are also developing automatic driving technology. And other technology companies, such as Waymo and the Motional joint venture
Hyundai engine
(005380. Korea) i
Active
(APTV) —they are working on robotaxis.
Is it hard to name who will be successful, when and what will the technology be worth? He
ETF Future Fund
Managing Partner (FFND) Gary Black does not include robotaxi sales in his projections. He believes that autopilot software can generate some recurring sales and help Tesla sell more Tesla.
Shares of Tesla have risen about 7% so far. But stocks have recovered recently, rising more than 25% in the past three months. Strong demand for electric vehicles around the world, as well as rising interest rates, which are not as bad as feared, are two of the reasons for the recovery.
Write to Al Root at [email protected]