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Many Tesla (TSLA 3.10%) watchers know the stock has been on a major roll recently. In just the last month, the shares are up nearly 30%. That trend continued Monday morning with the stock moving 1.4% higher as of 10:55 a.m. ET.
CEO Elon Musk noted on Twitter over the weekend that Tesla has now manufactured more than 3 million vehicles after its Shanghai plant passed the 1 million vehicle milestone. That fact has investors seeing through some of the noise related to Musk.
Several things have contributed to the stock’s recent move higher. There is a little more clarity in the saga between CEO Elon Musk and Twitter. While investors still don’t know if Musk will be forced in court to follow through with his bid for the social media company, his recent sale of nearly $7 billion in Tesla shares related to the deal gave investors some information on how it might affect Tesla and his holdings.
Additionally, Musk said last week that while the company’s Cybertruck still won’t be available until next year, the Tesla Semi Truck will be coming out this year, earlier than expected. A report from industry observer Torque News on Friday highlighted the economic advantage of the electric heavy truck over diesel-powered models. It showed a 200-mile journey using Tesla’s truck would have less than one-sixth the fuel cost.
Optimism has also been boosted by the passage of the Inflation Reduction Act. Tesla will once again benefit from tax incentives for buyers of its cheaper models, which haven’t been provided since it passed the 200,000-vehicle mark. And Tesla’s battery and energy segments will also likely benefit from investments from the legislation in the long run.
The stock’s momentum has led to a month-long surge that has Tesla approaching the $1 trillion market cap it hasn’t seen since April. Investors are clearly excited once again at its prospects as it ramps up its two new plants in Texas and near Berlin, Germany, and prepares to offer its new trucks this year and next.