Tesla Shoots Up 6%, Why?

Written By Elian Deems

Shares of Tesla are shooting up 6% as of writing this. This is something we haven’t seen all to often from the troubled automaker, so what is happening, and why this sudden burst in share price? Well as we look at the news regarding Musk’s largest company we can see a few items. First about their collaboration with Pepsico, then some welcomed data about the company loan terms, we have some fire news and some competitor news, so let’s do what all media does, and begin by pushing the bad news, only to stuff the good news at the bottom where nobody reads it.

Fire in Freemont
So this is the somewhat bad news, and it’s a short one. The Freemont factory experienced a fire, which started in one of the ovens, to be fair, it was probably not so spectacular because it wasn’t covered by that many media outlets.

Pepsico Gets More Semi’s
We know that Tesla has been slower than expected with building and scaling (I wouldn’t even call it ramping yet) the semi-production. Pepsico as a launch partner of the vehicle was (one of) the first to use the vehicle and wanted to receive more of them in order to have a decent-sized fleet of them driving around. Today the news broke that it happened as they have taken delivery of 50 additional units of the Tesla Semi Truck.

Your Loan Can Be More Expensive
As Tesla lowered the loan term to 0.99% for their auto loans, they have now changed that for 1 of the terms. When choosing the 72-month plan, the interest on that plan will now be doubled, to 1.99%. Have to keep it a bit negative when talking about Tesla right? In all honesty, I think the interest rate is too low but if it helps to move units, and get people to opt in the FSD package, it might be a good thing for the company, but this will become clear in the next earnings report. After seeing my stance on the matter, it will not be a surprise that I like that Tesla has increased the interest rate. The 0.99% is still available for loans on 36, 48, and 60-month plans.

Competition? What Competition?
Li Auto, one of the Chinese Tesla competitors that is fully willing to dive into a price war with Tesla has come out to say that they do not expect to be launching a SUV until 2025. This is of course positive for Tesla, as China is the largest car market in the world, and the competition has been fierce. So when Li Auto, one of the main competitors says they will leave the Model Y alone for now, that’s good news for Tesla.

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Elian Deems
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