Tesla shares increase on Citi upgrade, Elon Musk talks of a new factory in Asia

November 28, 2022: On Wednesday, Tesla shares increased almost 8% after hitting a 52-week low a day earlier. The rally followed an advancement by analysts at Citi and an expression from Tesla CEO that South Korea is a top people for a recent factory the firm hopes to build in Asia.

The revaluation is a respite for Tesla investors, having seen the value of their holdings fall by almost half this year between a broader tumble in the market and a shift out assets risk.

“We believe the year-to-date pullback balancing out the near-term risk/reward,” Citi analysts stated, raising their stock rating to be neutral. “Is becoming bullish from here; we’d gain added confidence on the average sale price/gross auto margin bridge and FSD progress.”

Tesla is selling driver assistance systems, which include the standard Autopilot, installed in all of its recent cars, and a premium FSD option. FSD refers to what the firm calls its full self-driving capability. In the U.S., Tesla’s FSD costs $15,000 upfront or $199 monthly on a subscription basis. The firm needs to say what percentage of users opt for that option or the number of people who end their subscriptions.

Musk has been making promises to Tesla investors and customers since 2016 that his firm will be able to change its cars into self-driving vehicles capable of operating as robotaxis. Therefore, it’s yet to deliver. Drivers of Tesla’s Autopilot, Enhanced Autopilot, FSD and FSD Beta systems should remain vigilant on the road, with hands on the steering wheel, taking over the driving task every time.

Musk also spoke with South Korea’s President Yoon Suk-year and expressed optimism that a recent Tesla factory will eventually start in the Asian country.

The extending selloff that preceded the rally on Wednesday has come as Musk’s attention has turned mainly to Twitter, which he acquired for $44 billion in the previous month.

Some dips in Tesla shares followed the Twitter deal. Earlier this month, Musk sold one more $3.95 billion in Tesla shares, narrating to Twitter employees he is so to save the social media firm.

Musk swiftly implemented significant layoffs, fired executives and tweaked essential features of the platform. In response, many advertisers paused their spending on Twitter campaigns, and civil rights activists have known for more boycotts until Musk’s team proved it could contain hate speech and different harmful content on Twitter.