Why Tesla Stock Rose Today on Bad News

AI dreams trump Australian-fire fact.

What came about

Tesla (NASDAQ:TSLA), the electrical-car (EV) kingpin, is understandably most efficient identified for its EVs. In on the present time’s news, on the other hand, the company’s inventory is inching up a modest 1.9% in 1: 50 p.m. EDT shopping and selling for reasons that enjoy tiny to enact with EVs.

Let’s originate up with the atrocious news. As extra than one news outlets enjoy now reported, Tesla’s extensive Australian battery challenge — the “Victorian Enormous Battery” that offers backup electrical energy to Victoria enlighten in Australia — caught fire early Friday, local time. Or somewhat, undoubtedly one of many Tesla “megapack” batteries making up the energy warehouse did. 

No one was as soon as injured in the blaze, and its blueprint off is unknown. On the replacement hand, the incident represents on the least a minor setback for Tesla, which has been working to compose battery electrical energy storage a greater share of its industry.

Triangular yellow caution sign showing a fire and the words LI-ION BATTERY

Image offer: Getty Photos.

So what

On the identical time, there may perhaps be factual news as well to the atrocious. In a cryptic tweet Wednesday, which the media picked up dead Thursday, Elon Musk presented that Tesla would preserve an “AI [artificial intelligence] Day” on Aug. 19. 

Tesla AI Day August 19th

— Elon Musk (@elonmusk) July 29, 2021

Now what

It be worth declaring that Musk did not grief to uncover in his tweet what precisely an “AI Day” is. Presumably, it refers help to a tweet mid-final-month promising to “proceed over progress with Tesla AI utility & hardware, every coaching & inference.” 

However even in the absence of a constructive explanation of what AI Day is, Musk’s tweet sparked some 15,000-plus feedback on Twitter, and with regards to as many retweets. As standard, most were Dogecoin memes, leavened with a couple of questions about SpaceX — but on the least a couple of Musk devotees thought to expect whether Tesla’s AI revelations may perhaps maybe perhaps lengthen beyond Tesla, per se, to take care of alternative AI products that Musk has up his sleeve.

Will you proceed over examples of tangible-world AI capabilities (as antagonistic to autos/autos) which Tesla may perhaps maybe perhaps score fascinated by?

— Emmet Peppers (@EmmetPeppers) July 29, 2021

Granted, they got no response from the Tesla boss to these questions. Regardless, it appears to be like constructive that this can dangle greater than a bit of fire in Australia to conquer the enthusiasm over Tesla’s AI plans this week — and that is why the inventory is heading greater on the present time.

This text represents the idea of the author, who may perhaps maybe perhaps disagree with the “reputable” recommendation place of a Motley Idiot top rate advisory provider. We’re motley! Questioning an investing thesis — even undoubtedly one of our have — helps us all non-public critically about investing and compose choices that serve us change into smarter, happier, and richer.

Rich Smith has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Tesla and Twitter. The Motley Fool has a disclosure policy.”>

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