Why Tesla Shares Moved Higher Friday
Shares of Tesla (NASDAQ: TSLA) popped almost 3% at the open Friday. The stock gave back those gains, and was trading at nearly break-even as of 12:30 p.m. ET. But the reason for the early gains could bode well for further moves higher.
Tesla stock has been under pressure the past few months, dropping nearly 40% over that time. Much of the angst stemmed from uncertainty caused by supply chain disruptions and suspended operations in its Shanghai manufacturing plant. Those production delays were caused by government-imposed shutdowns to prevent the spread of COVID-19. But news out of the Chinese electric vehicle (EV) sector today may signal good news ahead for Tesla.
Chinese EV makers Nio, XPeng, and Li Auto reported their June delivery data this morning, showing they all recovered nicely from the headwinds. After analysts slashed expectations for Tesla's second-quarter deliveries, this may set the company up to outperform.
Source Fool.com
