In the premarket trading session on Friday, Tesla’s stock demonstrated a positive trajectory following CEO Elon Musk’s proclamation of the electric-vehicle company’s ambitious plans to invest “well over” $500 million in expanding its Supercharger network. Musk’s announcement, made via his social media platform X, disclosed Tesla’s intention to install “thousands of NEW chargers this year,” emphasizing both the establishment of new charging sites and the expansion of existing ones.
This declaration followed recent reports indicating a reduction in Tesla’s Supercharger team by around 500 employees. Despite these organizational adjustments, Tesla’s stock experienced an upswing on Friday, potentially breaking a streak of three consecutive days of decline.
During premarket trading, Tesla shares ascended by 1% to reach $173.66, coinciding with positive movements observed in S&P 500 and Nasdaq Composite futures, which both increased by 0.4%.
Throughout the week, Tesla’s stock performance was marked by a mix of ups and downs, with declines on Tuesday, Wednesday, and Thursday contributing to an overall decrease of about 5% for the week. This volatility in Tesla’s stock price correlated with various developments that influenced investor sentiment. These included reports of recent layoffs that could potentially impact the company’s culture, heightened scrutiny from the Justice Department regarding Tesla’s marketing of driver-assistance systems, and a request from the National Traffic Highway Safety Administration for information on accidents involving vehicles with activated driver-assistance systems.
Despite the recent fluctuations, Tesla shares had previously rebounded, climbing 21% from their 52-week closing low reached on April 22, just before Tesla announced better-than-expected earnings. However, even with this rebound, Tesla’s stock remains down by approximately 31% for the year.
Investors continue to monitor Tesla closely as the company navigates various challenges and opportunities in the electric vehicle market.