Entering a new month, Tesla (NASDAQ:TSLA) is seeing the type of turbulence that investors have come to expect. As of this writing, it’s down 3% for the day. However, although TSLA stock has dipped today, it remains in the green for the week by more than 5%.
With the crisis in Ukraine escalating rapidly, few eyes have been on the electric vehicle (EV) sector. CEO Elon Musk recognized a clear opportunity, though, when he took it upon himself to send SpaceX Starlink satellites to help keep Ukranian citizens connected to the internet. This type of action has generated some positive market momentum for Tesla.
Other media coverage on Tesla this week has been fairly mixed, with the typical combination of good and bad news. Musk’s legal problems have not subsided and Tesla’s full-self driving (FSD) tech is experiencing more setbacks. However, other positive developments should give investors hope that TSLA stock will pull back fully into the green.
Let’s take a closer look at the Tesla headlines investors should be watching this week.
TSLA Stock News: Top Headlines of the Week
Elon Musk invites a union vote at Tesla, following a contentious history with organized labor.
One of the week’s biggest stories is that Elon Musk may finally be shifting his anti-union stance, per The Washington Post. Specifically, the CEO invited the United Auto Workers (UAW) to hold a vote to unionize at Tesla, claiming the company will “do nothing to stop them.” Musk made the offer in a tweet following President Joe Biden’s recent State of the Union address. In his speech, Biden had emphasized the importance of both EVs and domestic manufacturing but did not mention Tesla. It has been speculated that Biden’s reluctance to acknowledge Tesla is due to its anti-union history. If the UAW does unionize, it could signal the start of a new chapter for both Musk and Biden. This type of development could certainly help TSLA stock grow.
Tesla to win approval for $5.5 billion Berlin gigafactory on Friday.
Both TSLA stock investors and EV aficionados have been waiting for some news out of Berlin. This morning, Reuters reported that Germany’s Brandenburg state was planning to give Tesla the thumbs up it needs to begin churning out more EVs in Europe. The company has already begun delivering EVs to certain European nations. If it receives the green light to start mass-producing in Germany, Tesla’s European expansion will be considerably easier as demand booms across the continent. Tesla will still need to meet certain conditions, but it’s likely that Friday brings the company good news.
Elon Musk and Tesla face trial over CEO’s multibillion-dollar pay package from 2018.
It’s hard for a week to go by without a new story circulating regarding Elon Musk’s legal troubles. To that end, this week brought further coverage on a lawsuit levied by a shareholder against the CEO and Tesla’s board of directors. Per CNBC, the allegations are that a pay package Musk received in 2018 was “excessive” and represented a breach of “fiduciary duty” on the part of the board. Cases like this often drag on as legal teams on both sides fight to reach an understanding. Still, Musk has vast legal resources and, although the battle continues, it isn’t likely to effect TSLA stock too much. While the story has trended, shares have mostly risen.
Tesla’s FSD Beta 10.10.2 Struggles In Detroit, No Snow This Time.
Another area of concern for TSLA stock has been its FSD setbacks. Tesla has been working hard to bring full automation to the public but implementing self-driving features has proven difficult. This week, an EV enthusiast from Detroit shared a video of himself testing Tesla’s FSD Beta Version 10.10.2 with no snow on the streets. In a previous video, the driver had tested Tesla’s FSD while there was still snow, presenting problems for the system. Some argued that it was not fair to test the car in such conditions. However, InsideEVs takes the opposite stance, arguing that prospective buyers should see how a car will perform in all conditions. What’s more, this week’s test video from the driver shows there are issues snow or not. Still, while Tesla clearly has some FSD improvements to make, previous setbacks haven’t held TSLA stock back.
Panasonic to begin mass producing new Tesla battery by end-March 2024.
Tesla may be experiencing setbacks on the FSD front, but this week also brought some good news regarding another important area. Battery production has long been a source of concern for EV makers, particularly as supply-chain problems persist. However, it has now been reported that electronics giant Panasonic (OTCMKTS:PCRFY) is slated to begin mass-producing batteries for Tesla at its Japan facility. Reuters reports that the new batteries will be five times larger than those currently produced by the company. This will ultimately mean lower production costs for Tesla, allowing the company to reinvest in other important matters. Good news regarding battery production is often a boon for EV stocks.
Is $100 Oil A Catalyst For Tesla Stock?
Finally, in more news, it has been impossible to ignore skyrocketing oil prices this week. Fears of an energy crisis are running high as geopolitical tensions continue to escalate. While oil stocks have been rising, Forbes recently raised the question of what the new oil boom means for TSLA stock. The outlet notes: “The current surge in oil prices could also hasten the transition to EVs. Crude oil prices are up by almost 40% over the last three months, to levels of almost $100 per barrel, amid the current war between Russia and Ukraine.” While there are other factors to consider, Forbes makes an interesting case for why TSLA stock could benefit from the current trend. It reminds readers that, even in such strange economic times, market winners like Tesla are worth watching.
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
