Tesla is opening up shop in Saudi Arabia in the latest sign that CEO Elon Musk has put to rest a once-bitter feud with Yasir Al Rumayyan, head of the $925 billion Public Investment Fund. Bloomberg's Matthew Martin reports.
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Tesla (TSLA 22.25%) CEO Elon Musk may have a seat at the table in the Trump administration, but his company's stock hasn't been immune to the market carnage initiated by the administration's trade policies.
Shares of Tesla (TSLA) soared more than 20% in Wednesday afternoon trading, leading other Magnificent Seven members higher amid a broad relief rally as President Trump announced a 90-day pause on most of the tariffs his administration announced last week.
Tesla is down over 20% for the year, but the rest of the electric vehicle (EV) industry isn't necessarily following that same trajectory. In countries like China, they're witnessing growth in EV sales.
Tesla starts selling cars in Saudi Arabia on Thursday, a country where on a 900-kilometre (559 mile) stretch of its main east-west highway linking the capital Riyadh and the holy city of Mecca there isn't a single charging station.
Tesla (TSLA -5.28%) stock has moved in so many directions over the last few years, it's been hard to keep up. Between Jan. 1 and Oct. 31, 2024, Tesla's share price return was less than 1%.
Investors hope the EV maker's CEO can get the president to soften his tariff policies.
Elon Musk has lashed out at Donald Trump's trade adviser Peter Navarro, calling him a “moron” and “dumber than a sack of bricks” in a heated exchange on X, the social media platform owned by Musk. The clash followed comments from Navarro, who dismissed Musk as merely a “car assembler” whose Tesla vehicles rely heavily on parts sourced from countries such as China, Japan and Taiwan.
A Tesla Supercharger station was damaged in Lacey, Washington, on Tuesday, according to local police and the Federal Bureau of Investigation.
Shares of techology giants bounced amid optimism the US may negotiate tariff adjustments with other nations, led by chipmaker Nvidia Corp (NASDAQ:NVDA, ETR:NVD) which added 5.9% at about $103. Tesla Inc (NASDAQ:TSLA) gained 5.5% while Microsoft Corp (NASDAQ:MSFT) added 2.9%.
Tesla, Inc.'s valuation has depreciated significantly in light of weak auto demand, CEO Elon Musk distraction, and tariff disruptions in recent months. But Tesla's current price already reflects worst-case growth risks, offering favorable upside prospects even in a conservative scenario that captures the anticipated impact of economic deterioration and other company-specific headwinds. There are also multiple imminent upside catalysts in place for TSLA stock that shouldn't be overshadowed by ongoing market fears and tariff uncertainties.