Why Tesla Stock Popped, Then Dropped Today

What took problem

Shares of Tesla ( TSLA -0.59% ) raced out of the gate Wednesday morning, ice climbing 2.3% within the first couple minutes of Trading sooner than starting to plunge support.

However create no longer be disappointed that Tesla is giving support about a of its gains right this moment — the prolonged-time length records about this development inventory seems propitious.

Referee blowing a whistle and pointing up.

Image offer: Getty Photography.

So what

Tesla’s first enormous pop seems to have been sparked by a shrimp bit of company theater. In an obvious crawl at the phenomenon of whistleblowers attempting to embarrass their bosses, Elon Musk tweeted final night that Tesla is now selling a “runt-edition Cyberwhistle” formed cherish its mild-unavailable Cybertruck.

Blow the whistle on Tesla!https://t.co/c86hLA0iQK

— Elon Musk (@elonmusk) December 1, 2021

Then poking extra relaxing at rumors that Apple ( AAPL 2.15% ) is attempting to produce an electrical car, he added: “Construct no longer rupture your money on that silly Apple Cloth, snatch our whistle as one more!”

Construct no longer rupture your money on that silly Apple Cloth, snatch our whistle as one more!

— Elon Musk (@elonmusk) December 1, 2021

Very funny, Elon. Tesla customers rushed to catch in on the shaggy dog memoir, but interestingly determined that a shaggy dog memoir is never always genuinely necessarily the most attention-grabbing reason to splash down $1,150 or more on a portion of Tesla inventory, and perfect as rapidly as it went up, Tesla inventory began going support down as soon as more.

Now what

However wait! There’s more! In a more basic pattern right this moment, Reuters is reporting that the CEO of Tesla rival Stellantis ( STLA 3.54% ) is mainly no longer obvious that his company — or any company — can profitably compete with Tesla in EVs.

The prices of transitioning from gasoline-powered autos to electrics are “beyond the restrict” of what car makers or car customers pays, warns Stellantis CEO Carlos Tavares. Constructing an EV prices Stellantis 50% bigger than constructing a “former car,” laments the CEO. And “there’s now not any longer such a thing as a technique we are able to transfer 50% of extra prices to the final individual on story of most elements of the center class would possibly perhaps maybe perhaps maybe also no longer be ready to pay.”

It would possibly perhaps perhaps most likely maybe perhaps maybe even be more correct, though, to explain customers acquired’t pay 50% more for an EV built by Stellantis. As a result of with Tesla sales up 57% final quarter (and profits up 389%), Tesla seems to create no longer have any venture the least bit selling electrical autos.

This article represents the realizing of the author, who would possibly perhaps maybe perhaps maybe also disagree with the “decent” advice reveal of a Motley Fool top fee advisory service. We’re motley! Questioning an investing thesis – even one of our hold – helps us all judge severely about investing and attach choices that abet us change into smarter, happier, and richer.

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