Tesla (NASDAQ:TSLA) stock is advancing in early trading after reports surfaced that the automaker was looking to build an electric vehicle (EV) factory in India.
Meanwhile, at its shareholder meeting yesterday, the automaker reiterated that it expects to start delivering its Cybertruck EV this year and said that it would start advertising.
Also noteworthy is that Tesla CEO Elon Musk warned that the next year would be “challenging.”
An EV Plant Is Likely on the Way in India
Tesla is seeking to launch an EV factory in India after the Indian government rejected the company’s request to cut its import taxes on vehicles. According to Reuters, the country imposes up to 100% tariffs on imported cars.
Several Tesla executives are reportedly in talks with Indian government officials this week about details related to the proposed plant.
A Cybertruck Update and Advertising
Musk reported that the company would start delivering its Cybertruck this year and said it intends to hold an event next quarter commemorating the start of the deliveries.
The CEO added that TSLA would “try a little advertising and see how it goes.” In a column published earlier this month, I urged the automaker to start advertising partly because it is facing so much more competition than it has in the past.
I also noted that while Tesla had previously relied on positive publicity about Musk to help sell its EVs, the CEO had “become a polarizing figure, limiting the extent to which much of the media will give his company free, positive coverage.” Moreover, the change had lowered “the number of upbeat mentions on social media that Tesla receives,” I contended.
The Performance of TSLA Stock
TSLA stock has fallen 16% in the last three months but is up 56% year-to-date.
On the date of publication, Larry Ramer 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.