Tesla Stock On Track To Extend Gains: What’s Going On

Tesla, Inc. (NASDAQ:TSLA) shares rose strongly in premarket trading on Wednesday, signaling that the new-found upward momentum could carry the stock through.

 

In premarket, the stock rose 2.06% to $242.29, according to Benzinga Pro data.

The upside comes amid the news that the company has sent out invitations for the November 30 Cybetruck launch event. This was confirmed by Martin Viecha, Tesla’s VP of Investor Relations.

 

The Cybertruck is Tesla’s much-awaited electric pickup truck, which is expected to have a “Halo effect” on the company’s rest of the EV lineups. Analysts expect a production ramp-up in 2024. On the third-quarter earnings call, in response to an investor question regarding the number of Cybertrucks Tesla hopes to produce in 2024, Elon Musk said, “I think we will end up with roughly 0.25 million Cybertrucks a year.”

He hinted that the rate could be achieved in 2025 and said the production ramp-up will be tough.

Later, appearing on the “Joe Rogan Experience” podcast, Musk said the company is aiming to produce 200,000 units or maybe a little more.

The Cybertruck preorders now total over two million, according to a crowdsourced reservation tracker.

The stock could also be receiving support from the expectations concerning interest rates after Tuesday’s tame inflation data.

If the premarket gains hold, the stock could rise toward its post-earnings level seen on October 18.

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