In Korea, Tesla is creating a horror story about 2.03 million vehicles being recalled. It’s simply updating its software. It’s publishing the news as if there’s a big flaw in it. This behavior appears to be malicious in order to short-selling. But if you continue to do this, Tesla is still going to rise. And there’s a lot of news coming out now. Previously, there was a general well-known for war, but I think that the scalability of startups, businesses, and the long-term monopoly and share of ownership will tell the world who the king is. If only a few decades ago there were Munger Warren Buffet and Bill Gates as king, I would rather not have Tesla’s Elon Musk as our Napoleon. Anyway, Tesla has just got something new: Tesla will receive $152.9 million in financial incentives for its plants in Mexico.
12/15/2023 4:04am. MT Newswires

Tesla Inc (TSLA) will receive 26.3 billion Mexican pesos ($152.9 million) in financial incentives for its plant in the Mexican state of Cynreon in a statement released Thursday.

The incentives, approved by the Economic Development Council, will support Tesla by supporting the construction of water, roads and new transportation routes, the basic infrastructure of Santa Catarina province, along with a payroll tax break.

The incentive represents about 3.37% of Tesla’s total investment, based on an estimated price of $4.5 billion for the first phase of the project. Tesla’s stock is surging again. Thanks Jerome Powell.
12/14/2023 12:59pm. Barrons

So far, we haven’t lost any reliable stock in the trailer’s stock price. At least not when the Fed is delivering its Christmas joy, suggesting a cut in interest rates next year.

Tesla shares rose nearly 5% in Thursday evening trading to stay above $250 per share. The S&P 500 and Nasdaq Composite were both near-flat.

The journey for Tesla shares has been pretty wild. Shares were down substantially during Wednesday’s mid-trading session amid the possibility of losing federal tax credits in some of the Model 3 versions and a large recall putting pressure on investor confidence.

Barron’s has repeatedly stated that the recall is not very important for auto stocks.

Tesla will recall 2 million vehicles to update the autonomous driving warning system.

The cost of fixing the problem is low, and self-driving capabilities still work, which will eventually be widely adopted throughout the industry. Even the National Highway Traffic Safety Administration (NHTSA), which manages the recall, agrees with this view.

The change in tax credits is more problematic. Investors were aware that many electric vehicles would lose a portion of their $7,500 in 2024.

The U.S. government does not want to support EVs using Chinese batteries, and China is still the largest EV battery manufacturer on the planet, supplying Tesla and other automakers.

Nevertheless, it was surprising to lose the entire $7,500 tax credit in both versions of the Model 3.

However, this still only affects a small portion of Tesla’s product lineup. The biggest problem with changing tax credits may be the relative price impact. When adjusted to account for tax credits, performance Model 3 is now cheaper than long-range long-range Model 3.

Whatever the financial realities of taxation and recalls, investors were not happy Wednesday.

Tesla shares were once down nearly 4%. Then the Federal Reserve Bank and its governor, Jeremy Powell, decided to keep interest rates.

Moreover, the Fed dot plot shows that there will be three or four interest cuts in 2024.

Nasdaq Composite Soars; Dow Jones Industrial Average Closes At All-Time High.

All auto stocks jumped. In a series of games, GM shares are up nearly 9% from Wednesday’s lows. Ford Motor shares are up about 11%. Tesla shares are up 8%.

Low interest rates are important for the automotive industry. This means reducing customers’ car payments. The impact of interest rates on automotive demand has been trying to make Tesla CEO Elon Musk look good in some way for months.

This is one of the reasons auto stocks have gone up, but it’s hard for any stock to go down when the whole market rebounds. A significant percentage of all stocks over a period of time are simply due to market movements.

So traders and portfolio managers often track the beta of a stock, which is essentially a number that describes how a stock performs relative to the market.

Over the past year, Tesla’s beta versus the S&P 500 is around 2. This roughly means that a 1% rise in the S&P would expect Tesla’s stock to rise 2%.

Over the past few trading days, the S&P is up roughly 1.5%. With everything the same, Tesla shares finished up 4.81%. This could be explained by the impact of the falling interest rates on auto stocks.

What’s Next For Tesla Stock? With its recent rise, Tesla stock is right in the middle of a trading range over the past six months. Investors are truly waiting for something new to happen. This could be Q4 deliveries, earnings, interest rate cuts, and more.

The first two will affect Tesla stocks no matter what the market does. Meanwhile, low interest rates will help most stocks, especially Tesla.