In the latest trading session, Tesla’s shares have proven to be one of the most active stocks in the market. The data shows on Thursday that the share prices for Tesla moved in the upward direction.
Tesla Stocks Recorded a Significant Push
On Thursday, the share prices for the EV maker went really high and it was beautiful scenery for the investors who longed for a bullish movement.
The price of Tesla stocks finally moved higher in the recent trading session. The surge recorded in Tesla’s stocks was the highest increase rate it has witnessed in more than six months.
The reason behind the Surge
The stocks for the largest EV maker have been facing a downtrend and it is mainly because of Elon Musk. The (once) richest man in the world has been one of the most controversial personalities since 2010.
However, in the year 2022, Musk emerged as one of the most controversial personalities in the entire world.
This is mainly because of his involvement with cryptocurrencies and the Twitter dilemma. In early 2022, Elon Musk teased his followers that he would buy Twitter.
His announcement did work wonders for Twitter as the shares of the company went up. In April, Musk did announce that he was interested in buying Twitter.
Things went on and a simple process became an entire drama which led to October 2022, when Musk actually purchased Twitter.
Initially, everyone was happy with the developments until Musk started to fire the top executives of the company. Things went south from there and its impact has even extended to Tesla.
Musk Maybe Losing Interest in Tesla
Due to the entire Twitter drama, Tesla investors started to get agitated as they thought that Musk wasn’t paying much attention to the EV company anymore.
Tesla is the first company that Elon Musk worked tirelessly to make an empire and he eventually made it the largest EV maker in the entire world.
The investors who purchase Tesla stocks always looked up to Musk’s ambition. Therefore, seeing Musk distancing away from Tesla, the investors have started to lose confidence in the company.
On top of that, Elon Musk has continued selling billions of dollars’ worth of Tesla stocks that he has in his possession. To an estimate, Musk has sold over 22 million Tesla shares worth more than $23 billion.
Although Musk claimed he was trying to save the company by selling Tesla shares, investors have grown very concerned about his recent activities.
Tesla’s Recalls in 2022
Another reason why Tesla has lost its market traction is because of the constant recalls the company had to carry out in the year 2022 alone.
The company has been facing several software issues causing major technical issues with the cars. The company had no choice but to recall the vehicles in order to fix the problem.
With so many software and quality-related issues, the market has started to lose confidence in the strong reputation of Tesla in the EV sector.
Other companies such as Audi, BMW, Mercedes, General Motors, Ford, and many more have already started launching several EVs. Their vehicles are not facing such problems, which is not good for Tesla.
In the year 2022 alone, Tesla recalled more than 3.7 vehicles from all over the world.
Elon Musk is back in the Game
Just when the situation looked very bad for Tesla, Elon Musk announced his stepping down from Twitter, bringing back confidence in the Tesla shareholders.
Right after the announcement, Elon Musk addressed his teams at Tesla asking them to focus on the deliveries in the year 2022.
He asked the employees not to be worried about the stock markets. Instead, they must focus on carrying out the deliveries on time and make sure they are able to deliver as many vehicles as possible.
With Elon Musk showing his leadership for Tesla, the investors are confident the company’s shares will start surging.
Following Musk’s address to the team, the shares of the company surged by 8.08%. At the time of writing, the share prices for EV makers are trading at $121.82 per share.