Tesla spikes 12 percent as Musk comments on demand, EV stocks surge

Credit: Tesla

Tesla (NASDAQ: TSLA) stock spiked nearly 12 percent on Tuesday during trading hours as CEO Elon Musk commented on the automaker’s substantial demand and growing order log for its products. Tesla was not the only EV stock to bounce back from a troublesome few months due to a dicey economy as Rivian (NASDAQ: RIVN, +13.30%), Lucid (NASDAQ: LCID, +9.68%), and Nio (NYSE: NIO, +10.45%) all spiked considerably during mid-day trading.

All prices are current as of 2:10 PM on Tuesday.

Tesla stock likely jumped based on comments Elon Musk made earlier today at the Qatar Economic Forum hosted by Bloomberg on Tuesday. Musk noted that Tesla’s growing demand had countered the industry, which has swelled with competitors in the past few years. Additionally, Musk believes inflationary pressure, which has caused Tesla to increase prices on several occasions this year, will not stop the company from selling its cars.

“As anyone knows who has tried to order a Tesla, the demand for our cars is extremely high and the wait list is long,” Musk said. Despite increasing prices and uncertain supply chain conditions, Tesla has still managed to grow its order sheet and deliveries. However, the company’s streak of nine straight quarters of delivery growth may be in jeopardy following a three-week shutdown at the automaker’s Shanghai production plant.

Shares could also be affected by positive comments from Qatar Investment Authority CEO H.E. Mansoor Bin Ebrahim Al- Mahmoud, who stated the fund believes “in Elon’s leadership, and that’s why we have committed on this transaction.” Musk replied by stating that he appreciated the vote of confidence.

Following news that Musk would acquire Twitter in a massive $44 billion deal, some Tesla shareholders became increasingly wary of the fact that he would have to leverage some of his holdings to fund the Twitter deal. However, Musk has received increased support financially through a group of investors that include Larry Ellison, among many others. This has relieved Musk of having to leverage so much of his personal net worth and holdings to buy the social media platform. Tesla shares were affected by a broad sell0ff of shares after the Twitter deal was announced, but investors are becoming more confident in the move now that less pressure is on Musk and his Tesla shares.

Tesla shares are down 39.55 percent on the year, but up 16.82 percent over the past 365 days.

Disclosure: Joey Klender is a TSLA Shareholder.

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

Quotes provided by Barron’s.

Joey Klender: Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his time at TESLARATI, Joey has broken several big stories, including the first images of the Tesla Model S Plaid, the imminent release of the 4680 Model Y through EPA certification, and several expansions to the Lucid AMP-1 factory in Arizona, to name a few. His stories have been featured in several publications, including Yahoo! Finance, Fox News, CNET, and Seeking Alpha. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on Twitter @KlenderJoey.
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