Tesla shares rise 27% in June; Musk/Macron meet amid diplomatic tensions between the US and China| Investor’s Business Daily
Tesla (TSLA) CEO Elon Musk met Friday with French President Emmanuel Macron, the second time in a little more than a month, as the race to locate another Tesla factory in Europe heats up. TSLA shares advanced Friday after falling for two sessions.
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Kicking off a busy week of diplomacy, the Tesla chief attended Viva Tech’s annual conference in Paris on Friday. During his European tour, Musk visited Italian Prime Minister Giorgia Meloni and Deputy Prime Minister Antonio Tajani on Thursday.
Jockeying for a second Tesla factory in Europe appears to be underway. Reuters reported earlier this month that TSLA is in talks to make an “automotive investment,” possibly a vehicle factory, in Valencia, Spain. Other reports circulated in June said Tesla has agreed in principle to a plan to set up a manufacturing facility in India. Tesla has not confirmed any plans for a new manufacturing facility in Europe or India.
Macron tweeted a photo with Musk on Friday morning.
“Let’s work together! #ChoosFrance,” Macron wrote.
Tesla officially opened its Berlin-Brandenburg gigafactory last March. Tesla’s plans to expand its Shanghai plant also face roadblocks, with China worried about EV overcapacity and the price war started by Tesla, Reuters reported on Friday.
Meanwhile, China’s Premier Li Qiang is also heading to Europe this weekend, with stops in France and Germany. It will be Li’s first visit abroad since he became premier in March.
Li’s visit to Europe follows calls from President Macron for Europe to prioritize its “strategic autonomy” and avoid being drawn into US/China tensions over the Taiwan issue. Macron has also called on China to use its influence to push for peace in Russia’s war against Ukraine.
In addition, Li leaves China jokingly as US Secretary of State Anthony Blinken arrives in Beijing on Friday to address heightened tensions between the US and China. Blinken canceled its previous visit, scheduled for February, after a technology-laden, China-based observation balloon was spotted flying over the US
Tesla shares
TSLA advanced 1.8% to 260.54 on Friday during market trading. On Thursday, shares fell 0.35% to 255.90 after falling 0.74% on Wednesday, snapping 13 straight gains. Shares are up around 140% in 2023 and almost 28% in June. However, Tesla stock is down about 37% from the record high of 414 it hit in November 2021.
TSLA jumped more than 6% this week despite two straight declines.
Tesla stock is well extended past a buy point at 207.79 from what is either a cup or a double bottom base. Shares are more than 30% above their 200-day/40-week moving average. That’s the most extended they’ve been since the stock marked its peak in November 2021.
The global EV giant announced early Friday that deliveries of the Model S and Model X luxury models have officially begun in South Korea. Tesla previously only offered the Model 3 and Model Y in the country.
In the US, Tesla appears to be trying to move its Model 3 inventory. On Wednesday, the EV giant began offering customers who order a Model 3 between June 14 and June 30 three months of unlimited free supercharging, according to the company’s website.
In China, Tesla appears to be offering insurance subsidies on Model 3 vehicles. From June 16 to June 30, customers in China who purchase and complete delivery of a rear-wheel drive Model 3 vehicle will be eligible for an insurance subsidy of about $1,120, according to CnEVPost.
Tesla ranks third in IBD’s industry group for automakers. It has a 98 Composite Rating out of 99. Tesla stock has a 90 Relative Strength Rating and its EPS rating is 93 out of 99.
Follow Kit Norton on Twitter @KitNorton for more coverage.
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