Elon Musk is a celebrity in his own right. There are not many CEOs in the world who are as popular as him. He is one of the most influential people in the world, and his words have much impact. Earlier this month, a single tweet by Musk cost Tesla Inc. billions of dollars in share value.
Musk has been clashing with government officials recently. The Tesla CEO believes that his company should get the right to open their factories. Tesla has been successfully running its plant in Shanghai despite the Covid-19 pandemic. Musk has been asking the US government to allow Tesla’s plant in the US to also open. He believes that Tesla should be allowed to do so since they know how to contain the virus.
Tesla’s Fremont Factory Opening
Recently, reports came out that Tesla was going to open its plant in Fremont, California. The government officials had not allowed it initially. But Musk and his team are going ahead with it. They even have the support of US President, Donald Trump. The Fremont factory is Tesla’s flagship factory and the plant has officially opened as of Monday, 18 May 2020. The Alameda county had to give in finally and allow Tesla to reopen the plant.
Tesla’s Stock To Rise
Since the news first came out, Tesla’s stock has risen by 14%. In the same time, the US stock market has been falling and has continued to display volatility. Investors have clearly been reacting positively to the news. The stock of Tesla should continue to rise even further now that the plant is actually opening. This is because this is likely to increase Tesla’s sales and deliveries both at a time when most other businesses are not even open.
While some just see it as shifting sales from the next quarter to this quarter, it is much more. It is going to be able to capitalize at a time when other stocks are vulnerable. A rise in sales will boost investors confidence and encourage bullish behaviour for its stock.
Tesla Stock Price Update
Tesla’s stock opened strong on Monday, 18 May 2020 after pre-market trading. Many were expecting this since investors would be bullish about the plant reopening. The stock jumped to 827.78 USD from the previous close of 799.17 USD. Since then, the stock price has fallen again, and Tesla is trading at 807.86 USD as of 15:18 GMT. The stock is up by 8.22% on the day. Investors should continue to expect the stock price to rise, as Tesla ramps up production after a long break.