Shares of Tesla, Inc. TSLA continued their upward climb in premarket trading on Wednesday, demonstrating relentless momentum.
During premarket trading, the stock saw a rise of 1.38% to $278.25, according to data from Benzinga Pro.
The surge comes following increased speculation that the electric vehicle pioneer could establish a manufacturing presence in India. CEO Elon Musk confirmed this possibility after a meeting with Indian Prime Minister Narendra Modi in the U.S. on Tuesday.
Expanding into the Indian market presents a significant opportunity for Tesla’s electric vehicles, unlocking a vast potential customer base.
In a separate development, the Chinese government announced an extension of the vehicle purchase tax exemption for green-energy vehicles until 2027, albeit with certain restrictions. This decision bodes well for Tesla, particularly for their affordably priced Model 3 vehicles manufactured in China.
Additionally, positive market sentiment may be bolstered by the anticipation of record-breaking delivery volumes, with Tesla set to report its second-quarter results on July 2.
Tesla’s stock has experienced upward movement in 15 out of the last 17 sessions and is now nearing the psychological resistance level of $300.
Gary Black of Future Funds remarked that despite the recent surge, Tesla still maintains an attractive valuation.
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