Elon Musk's tweet Why Tesla Stock Put Pedal to Metal Today
Why Tesla Stock Put Pedal to Metal Today
Tesla (NASDAQ: TSLA) stock is enjoying what feels like a rare "up" day Monday morning, as investors parse some confusing news. Last week Reuters reported that Tesla has abandoned its plans to build a Model 2 electric car priced at less than $25,000, in order to focus its efforts on building "robotaxis" instead.
CEO Elon Musk quickly dismissed the rumor on social media platform X, saying Reuters was "lying."
But Tesla stock still took a hit on Friday, falling nearly 4%. Today, however, Tesla is winning back its losses -- and more -- as its stock bounces 4.2% through 10:05 a.m. ET.
Tesla tweets
Citing unnamed sources, Reuters reported last week that Tesla has entirely "canceled" plans to build the Model 2 electric car -- which at a rumored price of $25,000 could be key to Tesla's efforts to compete with low-priced electric cars from China. Musk was quick to dismiss the report in part, but he did seem to endorse the other half of what Reuters was saying -- the bit about the robotaxi.
In a tweet following up on Reuters' article, Musk confirmed that Tesla will announce a new self-driving electric vehicle (EV), which he called his "robotaxi," on Aug. 8.
Is Tesla stock a sell?
And that's really all he said on the matter. So what are investors supposed to make of these dueling Tesla reports, one from a respected news organization quoting inside sources at Tesla, and the other from Tesla's CEO himself?
Clearly, nothing's 100% clear right now. But the most likely scenario seems that Tesla has made robotaxis its new top priority, while pouring money into developing a cheap EV is now taking a back seat. In the middle of an EV price war, that seems a sound strategy that could preserve profit margins for Tesla. It's not a reason to sell Tesla stock.
But it might be a reason to buy.
-
27:47
theartofvalue
1 month agoElon Drops Tesla Future-Bombs on Earnings Call
42 -
17:43
theartofvalue
2 months agoBuy The Dip As Tesla Stock Slips?
31 -
16:52
theartofvalue
1 month agoTesla Earnings By The Shocking Numbers | Tesla Stock
44 -
6:14
Car Coach Reports
1 month ago $0.01 earnedTesla's Performance Falls Short: What Went Wrong? Why is the Stock Up?
731 -
5:45
Keneci
1 month agoElon Musk Announces Upcoming New Electric Vehicle Models
112 -
3:35
RAVries
1 month agoTesla asks shareholders to reinstate on $56 billion pay deal for Elon Musk
619 -
3:07:36
Todd Kueny - e/acc
1 month ago$TSLA Live - Tesla Stockholder Democracy, FSD & Robotaxi - 4/17/2024
1.68K -
4:34
TheCarCoachReports
2 months ago $0.01 earnedIs The Tesla Craze Fizzling Out? Why Electric Car Sales Are Slumping!
17 -
1:09:00
UFOs, Aliens, Space and Government Cover-ups
1 month agoTesla - Inventor of the Modern World
372 -
2:44
Michael Lee Markets, Economics, & Investing
2 months agoTesla's Stock will Recover & Markets Continue thier Ascent Higher
250