Tesla stock rose over 10% as Tesla Inc.'s India office is refunding early bookers of its Model 3

Tesla stock rose over 10% as Tesla Inc.'s India office is refunding early bookers of its Model 3

Tesla (TSLA) stock surged over 10% on Thursday, reaching an intraday high of $259.45, following a 2% increase from the previous day's close of $255.90 [1]. The stock's performance is attributed to several factors, including a focus on Elon Musk's commitment to the robotaxi rollout in June and his reduced involvement with President Donald Trump [1]. Additionally, Tesla's stock has historically shown significant volatility, with an average movement of about 11% over the past eight quarters following earnings [2].

The latest stock movement comes amidst a series of events that have influenced investor sentiment. Tesla's India office has been refunding early bookers of its Model 3, signaling a strategic move to address market concerns and potential entry into the Indian market. The refunds are part of Tesla's broader strategy to navigate high import tariffs that make its cars twice as expensive as their international counterparts [3]. Tesla has been cautious about entering the Indian market due to these tariffs, which have been a significant deterrent.

Tesla's cautious approach to the Indian market is reflected in its recent actions. Despite canceling a planned visit and investment in 2021, Musk has expressed interest in visiting India this year to discuss technology and innovation [3]. The company has also finalized showroom space and posted multiple job listings, indicating a gradual but steady preparation for a market entry. These steps suggest that Tesla is carefully considering the right time to enter the "very hot" market of India, despite the challenges posed by high import tariffs [3].

In summary, Tesla's stock rise is a reflection of investor confidence in the company's strategic moves, particularly its focus on the robotaxi rollout and its cautious approach to entering the Indian market. The refunds to early Model 3 bookers signal a strategic response to market concerns and potential entry into a highly sought-after market.

References:
[1] https://www.investors.com/news/tesla-stock-buy-or-sell-elon-musk-donald-trump-robotaxi-june-launch/
[2] https://finance.yahoo.com/m/4e6035d6-4df0-3db2-919a-0773de6ec677/tesla-stock-jumps-at-the-open.html
[3] https://m.economictimes.com/industry/renewables/elon-musks-tesla-calls-india-a-hot-market-but-says-100-car-tariffs-is-making-customers-anxious/articleshow/120543176.cms