The stock’s move up has been caused by an assortment of factors, including volatile Bitcoin price changes, news that the company might open its network of charging stations to other automakers in 2022, and a good week for tech stocks such as Tesla.
The latest breaking news to help Tesla came this Thursday, when the EV news outlet Electrek reported that Tesla is discussing with Norwegian leaders the possibility of allowing other EV makers in the country to use its network. This comes after a rumor that the company was considering the same thing in Germany. Not only would sharing its large network of charging stations lead to more revenue for the company, but it could also get more public attention to electric vehicles, speeding up their use among drivers.
A return in Bitcoin after a sharp downfall might have also had a role in Tesla stock rising this week. The company bought $1.5 billion worth of the crypto and it intends to keep its stake for the longterm. This stake in Bitcoin sometimes leads to volatility in Tesla’s price when Bitcoin goes higher or lower.
Finally, many growth stocks increased several points or higher as Wall Street warmed up to these companies’ shares after they dipped sharply earlier this year. This market trend is possibly helping Tesla gain more momentum.
Meanwhile, Tesla is ending its second quarter. Investors are wanting the company to deliver more cars than ever before in this quarter as Tesla works to reach its guidance to increase total 2021 deliveries to over 50% y/y.
Investors will get an update on this period at some point in the second part of July, when Tesla normally gives its second-quarter numbers.
Author: Scott Dowdy