Tesla shares rose more than 10 percent on Monday after an otherwise solid decline. Analysts point to two reasons.
Analysts have two different ideas about why Tesla shares are now skyrocketing again after a significant decline that began in December.
Tesla shares rose sharply on Monday, registering a 10 percent gain. It is the biggest single-day increase since the election of Donald Trump back in November last year.
The current development comes after a period of drastically falling stock prices.
Several analysts point to two possible explanations for the increase in Tesla shares. First, there is speculation that potential punitive tariffs, which would have negatively impacted Tesla from April 2, may not be implemented.
The second explanation is that smaller investors see the recent decline in the share price as an opportunity to buy shares at a potentially low price.
The stock price could plummet again in just a few days
"Some investors believe that all the negative news has already been priced into the stock price and that it is therefore a good time to buy," Dan Coatsworth, investment analyst at AJ Bell, told Reuters.
In the near future, specifically in a little over a week, Tesla will publish its sales figures for the first quarter.
Although sales of Model Y have begun to increase, there is a risk that the overall sales figures could disappoint shareholders and thus send the price down again.
Several analysts expect Tesla to face its weakest quarter in several years, leaving divided opinions on the future development of Tesla shares.
Conversely, Elon Musk, in his capacity as Tesla's CEO, has encouraged his employees in particular to hold onto the shares.
– But what I'm telling you is that the future is incredibly bright and exciting, and we're going to do things that no one has ever dreamed of.
– What I'm saying is: Hold on to your shares!, Musk said in a speech to the employees, which was broadcast live on the director's own social media X – the former Twitter.
