On Wednesday, Tesla’s share price began to recover after several weeks of decline. Elon Musk talks about expanding business and opening a new factory.
Tesla shares hit a 52-week low on Tuesday. However, shares jumped as much as 8 percent on Wednesday. The rally follows an update by Citi analysts and statements by Tesla CEO Elon Musk that South Korea is the best candidate for a new plant the company hopes to build in Asia.
The recovery is a breather for Tesla investors, whose asset values have fallen by about half this year as the market falls wider and moves away from risky assets.
Twitter or Tesla
The fall in Tesla shares was due to the purchase of Twitter by Elon Musk. Some of the decline in Tesla shares followed a massive share sale by Musk, who liquidated some assets to fund the deal. Earlier this month, Musk sold another $3.95 billion worth of Tesla shares, telling Twitter employees he was doing it to save the social media company.
Musk quickly implemented massive layoffs, fired executives, and improved important platform features. In response, many advertisers have indefinitely suspended spending on Twitter campaigns, and civil rights activists have called for more boycotts until Musk’s team can prove they can handle hate speech and other harmful content on Twitter.
Autonomous Tesla
Tesla sells driver assistance systems, including the standard autopilot fitted to all new vehicles and the premium FSD option. In the US, Tesla’s FSD currently costs $15,000 upfront or $199 per month on a subscription basis. The company does not say what percentage of users choose this option or how many terminate their subscription.
Musk has been promising Tesla investors and customers since 2016 that his company will be able to turn their cars into autonomous vehicles. At the moment, the system is not yet fully operational, and drivers who use it must be careful on the road.
Source: Wprost
