- Tesla (NASDAQ:TSLA) has had a turbulent week despite an early rally
- Through it all, there has been more good news than bad
- Supply chain constraints won’t hold back the electric vehicle (EV) producer
Tesla’s (NASDAQ:TSLA) turbulent trading week will likely end on a high note. Big Tech stocks are still battling negative momentum spurred by the recent market selloff. While TSLA stock rallied early in the week, it quickly slipped back into the red along with many of its peers. As of this writing, though, shares are up 4% for the day. This morning brought an interesting announcement when Elon Musk tweeted that his Twitter (NYSE:TWTR) acquisition is on hold due to new data on the platform’s fake accounts. This news has TSLA stock rising while TWTR shares fall.
Even before that story broke, Tesla had plenty of good news to report. Despite the difficult trading week, the company has announced several key developments that should give investors cause for optimism in the coming months. Tesla is making strategic moves to show that it has no intentions of letting supply chain constraints hold it back. The EV leader is making progress in other areas, both in the U.S. and abroad.
Let’s take a closer look at this week’s most important TSLA stock headlines.
Top Headlines for TSLA Stock Investors
Why Tesla Stock Is Rising After Elon Musk Put the Twitter Deal on Hold
Musk’s announcement definitely isn’t helping TWTR stock, which fell 10% in today’s first hour of trading. But Twitter’s loss is Tesla’s gain. Musk acquiring Twitter could potentially pose negative consequences for Tesla, resulting in its shares being pushed down. The fact that TSLA stock reacted so positively to news of the acquisition being on hold should remind investors the zero-sum dynamic at play. It’s unclear how long it will be before the deal proceeds, but in the meantime, TSLA stock has one less obstacle to stop it from rising. This is definitely a story investors should be watching closely as it develops.
Tesla Might buy a mining company, but not another automaker
At the Financial Times Future of the Car 2022 conference earlier this week, Musk noted that Tesla is open to acquiring a mining company. In his words, “We will address whatever limitations are on accelerating the world’s transition to sustainable energy. It’s not that we wish to buy mining companies, but if that’s the only way to accelerate the transition, then we will do that.”
While Musk framed it as being a decision for the world’s benefit, it would certainly help his company. Tesla is focused on pivoting to powering its EVs with lithium iron phosphate (LFP) batteries. Having its own lithium or phosphate mine would help streamline production and allow Tesla to keep pace with rising EV demand. It is likely that the company will move forward with this acquisition, and TSLA stock will rise when it does.
Tesla Is Hedging Its Global Supply Chain Bets
“From India to Indonesia, Elon Musk is scouting out sites to make more Teslas for global roads,” this op-ed begins. It illustrates an important central thesis: that Musk’s focus on international expansion isn’t simply about increasing Tesla’s market share. It is about his quest to procure important partnerships to help the company stay ahead of supply chain constraints. Now the CEO is seemingly shelving his plans to set up shop in India and is looking toward Indonesia. The latter is one of the world’s leading nickel producers. This type of relationship would be a key step forward in Tesla’s EV battery production. The small nation is working hard to revamp its automotive industry by appealing to foreign companies. It is likely willing to negotiate in areas where India was not.
Tesla Exports First Cars from Shanghai Since Reopening Plant
China is eyeing its victory over Covid-19, and Tesla also has cause to celebrate. Chinese media outlets report that the company has shipped its first group of EVs built at the Shanghai plant since its opening on April 19. Indeed, 4,767 cars are en route to Solvenia and an additional 4,100 are shipping out today. Tesla’s sales in China plunged 98% during the month of April, but the company is clearly on track to make up the ground it lost. The company reported that it has already returned to 80% of its pre-shutdown production less than two weeks after the Shanghai plant reopened.
Elon Musk Hints CCS Plugs Coming To Tesla Supercharger Locations in the U.S.
Musk hasn’t lost sight of his plans for EV infrastructure. He recently told the Financial Times that Tesla is planning on opening up its supercharging stations to other EVs. This initiative is already in effect in Europe, where it has gone well. “It’s a little trickier in the US because we have a different connector than the rest of the industry,” he stated. “But we will be adding the rest of industry connectors as an option to Superchargers in the US.”
Musk noted that while this may negatively affect Tesla’s competitive advantage, it could be what is best for EV adoption. Allowing other vehicles to charge at Tesla Superstations isn’t likely to hurt sales or TSLA stock. It will certainly help put more EVs on the road, though. Tesla is far enough ahead in the EV race that it can afford to extend its tech to competitors.
Tesla Model Y And Kia EV6 Win U.S. News’ Best Cars Awards for 2022
Tesla has more reason to celebrate after receiving a lofty award. US News & World Report recently released its “Best Hybrid, Plug-In, and Electric Vehicles of 2022.” At the top of the list was the Tesla’s Model Y, named the model year’s Best Luxury Electric SUV. The EV is fairly similar to the Kia EV6 electric crossover, which took the title of “Best Electric Vehicle.” But despite its high price tag and increasing competition, the Model Y remains the top-selling EV in the U.S. The outlet describes the Model Y as “one of the most capable and well-rounded luxury electric SUVs that you can buy at the moment.”
On the date of publication, Samuel O’Brient did not have (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.