It’s going to be hard for Tesla (NASDAQ:TSLA) to top the excitement of last week. One week ago, Austin, Texas, was buzzing as Elon Musk took the stage at the company’s Cyber Rodeo. While TSLA stock has been fairly turbulent this week, shares remain in the green by more than 29%. Good news regarding new products and endorsements from industry leaders has helped it stay generally elevated as problems in China continue to threaten production. Adding to the mix is the constant fear of recession that continues to cloud markets and raise questions among investors. However, TSLA stock is still performing better than many of its competitors.
Today, much coverage involving Tesla centers around Musk’s offer to acquire Twitter (NYSE:TWTR). While Wall Street braces for answers from the social media giant, both TWTR and TSLA stock are falling. However, regardless of the verdict, Tesla will be less affected than Tesla. Plenty of other news stories we’ve seen this week should be of more interest to Tesla investors. While they’ve been mixed, there’s little for investors to worry about.
Let’s take a closer look at this week’s top headlines and examine why investors should be paying attention.
TSLA Stock News: Top Headlines of the Week
Tesla ‘will change the game’ much like Apple, Cathie Wood says
This week’s top headline pushed TSLA stock into the green, and it’s not hard to see why. Famed investor Cathie Wood has long approached Tesla with a bullish mindset. This week she told Yahoo Finance that she expected to see the company continue to “change the game.” Touting the potential of Tesla’s tech, she compared it to the way Apple (NASDAQ:AAPL) changed the tech sector when it introduced the iPhone. That is a flattering comparison, and it is well earned, given Tesla’s demonstrated ability to stay atop the electric vehicle (EV) race despite mounting competition.
America’s Favorite Truck Is About to Test Tesla’s Dominance
On the subject of competition, Ford (NYSE:F) is revamping its efforts to challenge Tesla. Last week, F stock fell after an analyst downgrade. Now, the legacy automaker is gearing up to release the electric version of its F-150 Lightning pickup truck, a popular model long embraced by U.S. consumers. Ford is betting on the truck to help investors forget about the sales decline it suffered in the first quarter of 2022. While the gas-powered model has helped wrack up sales in the past, it doesn’t necessarily mean Ford’s buyers will be looking for an electric option. This news is unlikely to pose any severe effect to TSLA stock.
You Can Now Reserve a Tesla Next-Gen Roadster
For anyone considering buying a new Tesla, this week brought an exciting update. The company has opened reservations for the highly anticipated Tesla Roadster, a sleek and impressive-looking vehicle. During last week’s Cyber Rodeo, Musk announced that the Roadster would be rolling out in 2023, delighting fans who want to see Tesla sports cars on the roads. While buyers still have some time to wait before they can drive one, investors can expect TSLA stock to rise in the coming months as further updates on the Roadster are provided. 2023 will also bring the launch of the Cybertruck, another important catalyst that will drive TSLA stock up further.
Tesla Announces New Hiring Efforts For Giga Texas
Tesla is already breaking ground on its promises to expand. At the Cyber Rodeo, Musk emphasized the importance of what the Austin, Texas, facility means for the company; the ability to continue scaling production. A week later, the company has already gotten to work hiring more workers. The underlying message for investors is that Tesla has no intention of slowing down. It hasn’t been stopped by supply chain constraints yet, and Musk doesn’t seem worried about it becoming a problem. The company clearly expects to see demand continue, especially as it rolls out new Model Y SUVs and prepares to forge ahead with the Roadster and Cybertruck.
Tesla’s Shanghai Shutdown Threatens to Crimp Car Production
While Tesla opens new factories across the U.S. and Europe, things in China remain at a standstill. The spread of Covid-19 across the country has compelled China’s government to maintain strict lockdown policies that have forced factories to close. It certainly isn’t good news to see production slowed in such a large EV market. That said, investors shouldn’t be too concerned. This has been a turbulent year, but rising cases and supply chain constraints haven’t helped TSLA stock down for long. Production at the factory will resume as soon as China’s government allows. Furthermore, its management will be determined to make up for lost time.
Tesla Finally Fixed 1 of the Worst Things About Its Cars. It’s a Lesson In Keeping Your Promises.
When it comes to Tesla news coverage, a common negative theme has been that of product recalls. The company issued several this year, but they have mostly been for easily solved technical glitches. TSLA stock has bounced back every time. Today brought an exciting update — Tesla is taking strides in the opposite direction, working to correct a software malfunction that Ink describes as “one of the worst things about its cars.” While these recalls have never pushed TSLA stock too far down, this story should serve as an indicator that having to recall vehicles isn’t a reason for a bearish case. It should also remind everyone that the company is focused on correcting mistakes.
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.
