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Tesla stock (TSLA 0. 93%) has experienced a rollercoaster ride this year. After falling more than 40% and bottoming out at about $140 per cent constant in April, Tesla shares rallied to a year-to-date gain ahead of its second-quarter earnings report.
Tesla will release its full Q2 update after the market closes and investors will be listening closely. Anticipation has Tesla inventories rising to begin trading this week. Starting at 3:15 p. m. ET, shares had risen 5%. Part of this also has to do with election-year politics and what that may mean for the electric vehicle (EV) leader.
Tesla’s roughly 80% gain since April 22 came as investors anticipate an update to its fully self-driving software and after unusually strong vehicle deliveries in the second quarter. The company delivered about 444,000 electric vehicles in the quarter while reducing vehicle inventories. The result may simply be a more successful quarter than many analysts expected.
And CEO Elon Musk is also making headlines with his public comments on American politics. After recently endorsing former President Donald Trump, Musk doubled down over the weekend. Trump responded with a much warmer take on electric cars in general. At a rally over the weekend, the anti-EV former president said, “I love Elon Musk, I constantly talk about electric cars. . . I am totally in favor of them. “
Although the election is far from decided, it appears that Musk is running to position the EV industry, and his company in particular, for a forward-looking outcome. Although a long-term Trump presidency may simply mean less government and subsidies, Tesla is the only successful EV maker that can tolerate reduced tax credits and other aid for EV buyers.
But more imminent is what Tesla will say about the benefits of electric vehicles, the implementation of electric garages and autonomous driving technology. Some investors anticipate good news and jump into stocks ahead of this report.
Howard Smith holds positions at Tesla. The Motley Fool holds positions and recommends Tesla. The Motley Fool has a disclosure policy.
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