Tesla shares rise on Citi upgrade, Elon Musk talk of a new factory in Asia
Summary
The rally followed an upgrade by analysts at Citi and an indication from Tesla CEO Elon Musk that South Korea is a top candidate for a new factory the company hopes to build in Asia. The rebound is a respite for Tesla investors, whove seen the value of their holdings fall by about half this year amid a broader plunge in the market and a shift out of risky assets. "To become bullish from here, wed like to gain added confidence on the average sale price/auto gross margin bridge (including tracking near-term datapoints in China and Europe) and FSD progress." In addition to the Citi note, Musk spoke on Wednesday with South Koreas President Yoon Suk-yeol and expressed optimism that a new Tesla factory will eventually open in the Asian country. Adam Jonas, an analyst at Morgan Stanley, wrote in a report on Wednesday that the Twitter situation could hurt consumer demand for Tesla as well as commercial deals, government relations and "capital markets support."