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Highlights
- Elon Musk visited Tesla’s Shanghai giga-factory this week.
- While the billionaire was in China, Tesla’s stock soared to a high of $205.
- Tesla has lowered prices on some of its U.S. inventory models.
Elon Musk’s China visit this week, his first in three years, is an indication that he’s refocused his attention on his other company — Tesla. While there, Musk made a visit to Tesla’s Shanghai location, where he reportedly purchased fast food for the 100 employees at that giga-factory.
Investors like what they saw, sending Tesla shares to as high as $205, though some profit-taking has the stock hovering around the $200 area today.
In a recent interview with the Babylon Bee, Musk said that he regretted selling some TSLA stock last year as he was preparing to pay for Twitter. With the recent rally in Tesla stock, Musk’s net worth has shot back up to $192 billion, as he reclaims the title of the richest person on the planet.
Chinese officials rolled out the welcome mat for Musk, who joins only a handful of other CEOs who have made the visit since the pandemic, including Apple Chief Tim Cook and JPMorgan CEO Jamie Dimon.
#Tesla's founder & CEO @elonmusk, thanked the Shanghai Gigafactory's employees when he delivered a speech at the plant on Wednesday night. "Thank you for being here late at night…I just want to let you know, it warms my heart." pic.twitter.com/qwsE3nv03O
— Global Times (@globaltimesnews) June 1, 2023
EV Price Cuts
Tesla has lowered the prices on certain models in its U.S. inventory. The EV maker has slashed prices on the Model Y and Model 3, according to Teslarati, giving consumers who the opportunity to save hundreds of dollars on select EVs.
Tesla cut prices on Model 3 and Model Y vehicles several times this year, a move that pressured its profit margins in Q1. However, the lower prices have also piqued the interest of consumers, as evidenced by spikes in Google searches for Tesla vehicles around the time of these deals.
Wall Street analysts say that Tesla’s string of price cuts this year have strengthened demand for the EVs. The question remains if sales volume will be able to offset the price cuts in the near future.
Meanwhile, Musk is expected to launch a Tesla advertising campaign, which would be a first for the company and could drive greater demand for its EVs.
This article was originally posted on FX Empire
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