Tesla (NASDAQ: TSLA) stock finally has the opportunity to make a comeback as the market has regained its footing today, following the anticipation of tomorrow’s inflation report.
The market has finally begun to rebound as investors hope tomorrow’s U.S. inflation data will signal an improving economy. And while Tesla investors have cited concerns regarding Elon Musk’s leadership and possible demand issues as higher priority problems, as the saying goes, a rising tide raises all boats.
Currently, the S&P 500 sits at 3,955 points, up by just over 35 points in today’s trading alone. Similarly, the Dow sits at 33,904, up over 200 points in today’s trading. Seemingly in reaction to the positive movement of the market, Tesla stock has also seen a rare positive movement, up nearly 3% today.
With this possible market rally, many institutional investors have only become more confident in their positions, often bullish, regarding Tesla. As originally reported by CNBC, Goldman Sachs has announced that Tesla is once again a top pick for the trading firm, along with GM, which the company called a “leader” along with Tesla in the autonomous driving space.
Tesla was far from the only automaker which saw its stock climb today. Ford (NYSE: F), Rivian (NASDAQ: RIVN), and even Lucid (NASDAQ: LCID) each saw substantial recoveries from lows that were caught late last year.
As for the other concerns that Tesla shareholders have shared online, mostly pertaining to Mr. Musk’s time spent at Twitter and an alleged slump in demand for Tesla products, neither has been addressed by Tesla nor the CEO. And as for a potential Twitter CEO replacement for Mr. Musk, it remains entirely unclear if the replacement process has begun or if a new CEO has been identified.
With so much riding on tomorrow’s Federal Reserve announcement, many anticipate Tesla stock and many others to react harshly, no matter the announced results. But if the Fed continues to confirm a shrinking level of inflation in the U.S., America’s leading EV brand may finally get the wind in its sales that it has been looking for for months.
William is invested in Tesla Motors among other automotive stocks.
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