"Elon Musk Says Tesla Will Spend 'Well Over' $500M On New EV Chargers" - MorningStar
Portfolio Pulse from Benzinga Newsdesk
Elon Musk announced Tesla will invest over $500M in expanding its Supercharger network, contradicting reports of the unit's closure and recent layoffs of about 500 employees. Despite a brief uptick, Tesla's stock fell 2% in morning trading, continuing an 8.8% decline over four sessions. This comes amid broader concerns over layoffs, potential new tariffs on EVs from China affecting Tesla's significant revenue from the region, and increasing competition in the EV market. Tesla's stock has dropped 32.2% this year but saw an 18.7% increase since a 15-month low in April.
May 10, 2024 | 4:04 pm
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Tesla plans to significantly invest in its Supercharger network, aiming to dispel rumors of its closure. Despite initial gains, stock faces pressure from layoffs, potential tariffs on EVs from China, and increased competition.
The announcement of a substantial investment in the Supercharger network indicates Tesla's commitment to infrastructure expansion, countering rumors of its closure. However, the stock's short-term outlook is negative due to recent layoffs, potential new tariffs on EV imports from China (a significant revenue source for Tesla), and the intensifying competition within the EV market. These factors contribute to the current downward trend in Tesla's stock price.
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