This has been an exciting week for Tesla (NASDAQ:TSLA). The electric vehicle (EV) innovator hosted its first-ever Cyber Rodeo to celebrate the opening of its Austin, Texas Gigafactory. The event brought many exciting updates as Elon Musk wowed the crowd of 15,000, paying homage to the state of Texas. While TSLA stock has struggled over the past few days, the momentum surrounding the company’s announcements will carry into the coming weeks. Tesla proved that it is focused on the road ahead and it has given investors several key reasons to be optimistic.
That doesn’t mean that this week’s news has all been good. While there have been some less-than-positive announcements out of Shanghai, Cyber Rodeo coverage has overshadowed most other news. Now that the event is over, investors know that Tesla has several major catalysts on the horizon. Wall Street will likely focus on that, particularly as production setbacks have never kept TSLA stock down for long. And for fans of the EV sector or of Tesla’s tech, there is plenty to look forward to.
As this week wraps up, let’s take a look at the top headlines that TSLA stock investors should be reading.
TSLA Stock News: Top Headlines of the Week
Tesla officially opens Texas Gigafactory
Cyber Rodeo is not just important because it captured the nation’s attention. It is important because it represents the opening of Tesla’s Austin, Texas Gigafactory. This is truly a monumental event in the company’s history. “We are really entering a new phase of Tesla’s future, Musk told the crowd. He added that when the factory begins full production, it will be “epic.” Indeed, the new factory offers Tesla the space it needs to grow and scale production. Tesla set a sales record for the first quarter of the year and it has no intention of slowing down. The Austin Gigafactory will allow it to accomplish exactly that, helping TSLA stock rise even more.
Tesla will sell its long-awaited Cybertruck next year, Elon Musk says
As noted, the Cyber Rodeo brought many exciting updates. One of the most important involves the Cybertruck. Attendees got a glimpse of the futuristic vehicle that Tesla fans have been looking forward to for months. Now the CEO claims that Tesla wants to have the truck in production before the end of 2023. “You’re going to have this next year, and it’s really going to be great,” he said at GigaFest. While Tesla’s history of meeting production deadlines isn’t immaculate, even speculation of Cybertruck progress is usually enough to send TSLA stock up. Additionally, Musk provided a similar update on the long-haul Tesla semi truck.
Long-time Tesla bull Ron Baron plans to hold the stock at least another eight years
Even while TSLA stock struggled this week, it received a strong endorsement from someone who believes in the company. Ron Baron is one of Tesla’s principle shareholders, with a stake that has increased by twentyfold since 2016. This week he appeared on “Squawk Box” on CNBC and made it clear he is as bullish on TSLA stock as ever. His firm, Baron Capital, has invested almost 13% of its assets in Tesla, totaling roughly $6.2 billion. Baron notes that he plans to still be holding TSLA stock in eight to 10 years. “I think for Tesla this is the very beginning of what they’re doing,” he said.
Biden administration, auto leaders want ‘seamless’ EV charging station use
Before the Cyber Rodeo, Musk had another important event. On April 6, he joined several other automotive CEOs in a virtual meeting with several members of President Joe Biden’s administration. The topic was the future of EVs and charging infrastructure. According to a White House statement, “there was broad consensus that charging stations and vehicles need to be interoperable and provide a seamless user experience.” Musk has criticized Biden on numerous occasions for not acknowledging Tesla among the auto industry’s leaders. This meeting may usher in a turning point for the two.
Tesla’s ‘full self driving’ is more than vaporware. Why that’s good for the stock.
Throughout recent months, Tesla has faced considerable criticism for flaws in its full self-driving (FSD) tech. A primary argument among TSLA stock bears is that it will never be good enough to deliver on Musk’s promises. According to Tesla expert Al Root, though, this is not the case. He experienced it first hand while riding with a Tesla owner who was beta testing a new FSD system. Root confirms that the software is advancing well and it is part of the reason Tesla has become a trillion-dollar company. He sees it becoming an important upside driver for TSLA stock in the future.
Tesla ‘recalls’ another 120,000 vehicles in China, but it’s another software update fix
Tesla has recalled 120,000 EVs in China due to technical malfunctions. While recalls are never good news for an automaker, they haven’t kept TSLA stock down in the past. And according to Electrek, the incident is “another over-the-air software update fix.” While we don’t know much, the recalls were caused by what the South China Morning Post describes as an issue related to a “semiconductor component.”
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.
