Are Tesla Shares Preparing A Recovery?
Tesla is notorious for controversy driving its stock price, both up and down. So, it shouldn’t be surprising to see that shares of the electric car company have been basically flat over the past few weeks, and at the same time there has been little controversy as well.
That is almost certainly a positive for the company, which has thrived on controversy in the past, but has seen shares take a beating on the most recent controversies. Now perhaps the stock can become more mature, and slightly more predictable.
In fact, shares roared higher by 4% on Thursday following news that Tesla is planning on offering insurance to owners in California, which is not only expected to lower costs for Tesla owners, but could also see Tesla adding roughly $500 million in revenue. While that’s a fairly small amount, every bit helps in bringing Tesla to profitability.
Also helping lift shares recently was the tariff exemption won by Tesla from China. The tax exemption will help the bottom line, and Tesla also announced it is raising prices in China, more good news for potential profitability.
The most recent numbers for August look strong, with demand for the Model 3 in North America stable, while the European market is showing an increase in demand.
Still, Tesla shares are down 31% since the start of 2019. That could be turning around however, with the stock gaining 11.5% over the past three months. If that keeps up Tesla investors might even break even by the end of the year.
