Tesla (NASDAQ:TSLA)
In early trading on Friday, Tesla (NASDAQ:TSLA) skyrocketed higher after the electric car manufacturer increased pricing in the United States for the second time in a row. Additionally, investors absorbed the news that Elon Musk would take off the CEO responsibilities of Twitter.
There was a maximum price increase of $1,000 associated with Tesla automobiles, except the Model 3. These price increases applied to all models other than the Model 3. Recent pricing changes will benefit margin estimates for the second quarter, which might increase market sentiment. Despite this, the starting pricing of the Model Y, Model S, and Model X all remain noticeably lower than at the beginning of 2023.
Piper Sandler mentioned earlier this week that longer wait times for Tesla automobiles might indicate that demand has increased since the beginning of the year. “Wait periods also reflect Tesla’s manufacturing pace and the demand for automobiles of all types throughout the market. Nevertheless, we believe this rise will be seen positively,” said the analyst Alexander Potter who provided the news.
Wedbush Securities analyst Dan Ives described Elon Musk’s decision to step down as CEO of Twitter sooner than initially envisaged a favorable development for the firm and SpaceX (SPACE). This decision was made about the Twitter distraction.
Ives and the rest of the team feel that the new news adds around $15 per share to the Tesla narrative, given that the Musk-Twitter CEO overhang has been removed. Wedbush Securities has maintained its Outperform rating on Tesla stock, based on the belief that the recent news represents a significant advancement thanks to Musk finally reading the room surrounding the Twitter “nightmare.”
The 52-week range for Tesla stock is $101.81 to $314.67. In premarket trading on Friday, TSLA shares were up 2.22% to $175.96.
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