Tesla shares have risen higher the past couple weeks and there's a couple reasons why. Let's go over them.
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10 Year Treasury Yields Have Fallen
Tesla is a growth company and generally, when the yield percentage for the 10 year treasury goes up, growth stocks suffer due to the risk free return of the 10 year treasury providing a more attractive risk/reward ratio.
However, the 10 year treasury yield has dropped to below 1.5% at the time of this article since rapidly increasing over the last few months. If the yields continue to fall, expect growth stocks like Tesla to rise higher.
The Model S Plaid is Bringing Higher Margins
Tesla recently unveiled the Model S Plaid with a live event talking about the features of the Model S Plaid.
This event showed that the Model S Plaid was in a league of its own with impressive performance, safety, and entertainment value, not to mention that full self-driving is also an option for the car!
Tesla Continues to Have Strong Demand Internationally
Tesla's May deliveries showed that Tesla is still having strong demand internationally, removing prior FUD doubts in China. There is still strong demand for Tesla cars in China.
In the next couple weeks, when the delivery numbers are reported for Tesla in China, I have a feeling that we'll see that numbers have improved from May and that the demand is still there.
Tesla Vision is a Bullish Sign for Robotaxis
Recently, Andrej Karpathy released a video talking about Tesla vision. I'll be writing a future article about this, but suffice it to say, Tesla is doing much more with much less with its vision system and has the greatest chance to scale globally for autonomous driving.
Tesla Energy Is Beginning in China
There are reports of Tesla energy now beginning to have sales in China. I believe that the battery factory being built in Shanghai will also provide batteries for Tesla energy.
There's a lot of exciting things happening with Tesla. What other things are causing Tesla stock to rise besides these 5? Are there any negative things going on with Tesla? Will full self-driving happen in the next few years?
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Jeremy Johnson is a Tesla investor and supporter. He first invested in Tesla in 2017 after years of following Elon Musk and admiring his work ethic and intelligence. Since then, he's become a Tesla bull, covering anything about Tesla he can find, while also dabbling in other electric vehicle companies. Jeremy covers Tesla developments at Torque News. You can follow him on Twitter, Facebook, LinkedIn and Instagram to stay in touch and follow his Tesla news coverage on Torque News.
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