HomeInvesting NewsThe Reasons Why Tesla Stock Surged on Monday

The Reasons Why Tesla Stock Surged on Monday

Published on

Tesla (NASDAQ:TSLA)

The news from Germany over the weekend boosted Tesla stock by as much as 2.1% on Monday. Even after giving back part of its earlier gain, the stock was still up 1.2% as of 12:50 pm ET today.

What is the Reason?

According to a report in Automobilwoche, a German auto news publication, Tesla (NASDAQ:TSLA) plans to more than double its sales in Germany this year compared to 2021. If the EV market leader succeeds, it will overtake Toyota as the most popular brand in the largest economy in Europe.

What’s Next?

Sales expansion plans in Germany are not unexpected, given Tesla’s (NASDAQ:TSLA) ongoing production increases at its new Gigafactory in the Berlin area. However, it is an ambitious objective to treble sales this year, putting the company ahead of Toyota in overall German car sales. As of August, Tesla’s share in the German market was 1.5%.

That’s in contrast to the roughly 6% market share that passenger automobiles have enjoyed this year in the United States. In the United States, where Tesla (NASDAQ:TSLA) is based, the company is responsible for almost 66 percent of all battery electric vehicle sales, as reported by Barron’s.

Before the German plant opened earlier this year, Tesla (NASDAQ:TSLA) had supplied its German customers via its Shanghai manufacturing. About 40,000 electric vehicles were sold by the company in Germany in 2017. For Tesla to sell 80,000 vehicles in 2022, they need to do so during the next four months. If that number holds, it will surpass Toyota’s projected 75,000 sales in Germany for the year.

The accomplishment would be wonderful news for the progress in setting up the German Gigafactory, which is why investors are pushing the stock higher today. As CEO Elon Musk said earlier this year, the facility and its new plant in Texas were losing money and cutting production because of shortages in the supply chain. Investors in Tesla stock would want to hear that the two new factories are producing automobiles at a rapid pace and helping to boost the company’s bottom line.

Featured Image – Megapixl © Thorken 

Please See Disclaimer

Latest News

Recent Surge in Tesla Stock: Exactly What Caused It?

Tesla Stock (NASDAQ:TSLA) As of 11:30 a.m ET on Friday, Tesla stock was up 2.3%...

Here’s Why Carvana Stock Fell Quite So Much as 23.7% This Week

Carvana Stock (NYSE:CVNA) According to data provided by S&P Global Market Intelligence, Carvana stock fell...

Here’s Why Tellurian Stock Is Rising Again Today

Tellurian Stock (NYSEMKT:TELL) Tellurian stock was up 6.5% as of 11:06 p.m. ET today after...

Is It Time to Buy Chewy Stock?

Chewy Stock (NYSE:CHWY) Pet supplies are one of the few consumer goods that do well,...

More like this

2 Casino Stocks You Should Consider

With a recession on the horizon, investors must be more selective than ever. Analysts...

(Exxon Mobil Stock) Exxon Ceo Warns Biden Administration Against Restricting Fuel Exports

Exxon (Exxon Mobil Stock) opposes calls for oil corporations to reduce international exports and...

Apple Stock Loses $120 Billion Because of a Rare Downgrade

Apple stock just took a significant knock after it was once considered to be...

Meta Stock Tops Morningstar List of the Most Undervalued Stocks 

Morningstar compiled a list of the most undervalued stocks among those with a large...

Hd Stock up as Foundation to Contribute Up to $1 Million to Aid Communities Affected by Hurricane Ian

HD stock was trading at $280.23 as of 12:55 PM EDT. The Home Depot Foundation...

Making the Cut: Micron (Micron Stock)

Micron Technology Inc (Micron Stock) latest outlook brings expectations back to normal, although the...