Brief Summary
- Tesla’s entire self-driving software upgrade is now an optional $15,000 extra.
- The Tesla supply chain is being affected by China’s current drought-related manufacturing power reductions.
- On August 25, shares of the corporation will begin trading after a 3-for-1 stock split.
Tesla (NASDAQ:TSLA)
The 3-for-1 stock split that Tesla (NASDAQ:TSLA) investors approved earlier this month will be implemented later this week. While it may be good news for some shareholders, Tesla stock was down on Monday as the company focused on other, more pressing matters. As of 12:35 PM EST, Tesla shares were down 2.3% from Friday’s closing price. The stock dropped as much as 3.5% during the morning session.
What’s the Story?
After the weekend, a whirlwind of conflicting reports hit Tesla (NASDAQ:TSLA) shareholders. CEO Elon Musk said over the weekend on Twitter that the company will increase the cost of its fully autonomous driving (FSD) option by 25% starting on September 5. This is likely good news for the business. There will be an update at that time. The going rate for FSD is $12,000, with a monthly subscription option also available at $99. When ordered with a car after the release of the new software, it will cost $15,000.
What Should You Do Now
That’s promising if the firm believes demand can support the higher price. Some customers are still beta testing the self-driving software, and critics like consumer safety advocate Ralph Nader argue that the National Highway Traffic Safety Administration shouldn’t let that development phase continue.
Worry regarding Tesla’s (NASDAQ:TSLA) activities in China also weighs on today’s stock. Some cities instituted lockdowns to combat the spread of COVID-19, and the company’s Shanghai plant has been attempting to resume normal operations. Hydroelectric power has been reduced due to drought, so electricity must be rationed. According to the Wall Street Journal, Tesla (NASDAQ:TSLA) has petitioned Shanghai officials to prioritize manufacturers hit by power outages that damage Tesla’s plant.
While a stock split may excite some shareholders about the prospect of buying or selling shares at a lower price, it has no bearing on the company’s operations. However, the output from Tesla (NASDAQ:TSLA) Shanghai factory does. Some investors are selling their shares before learning whether or not the present power issue will hinder these attempts.
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Author Shariq Khan 
