Why Tesla Stock Jumped Tuesday
-Cathie Wood bought the dip in Tesla shares yesterday.
-Tesla CEO Elon Musk denied reports that the company no longer is supplied by China's BYD.
-The battery-supply agreement exists even as both companies compete in China.
Tesla still needs batteries from BYD.
Tesla shares rose over 5% in Tuesday trading and held onto a gain of 3.6% as of 3:40 p.m. ET.
Cathie Wood added new Tesla shares to her family of ARK Invest mutual funds. Tesla stock ended the day slightly higher yesterday, and that momentum continued today after news of Wood's purchases surfaced. But there was news from the company itself that also helped boost confidence today.
Reports that the end of that supply deal earlier this year ended the relationship were met with denials from both Musk and BYD representatives. Musk took to social media to say, "That media report is false. Relations between Tesla and BYD are positive," reports Reuters. BYD also stated that the reports of the end of the supply agreement weren't accurate.
-Tesla CEO Elon Musk denied reports that the company no longer is supplied by China's BYD.
-The battery-supply agreement exists even as both companies compete in China.
Tesla still needs batteries from BYD.
Tesla shares rose over 5% in Tuesday trading and held onto a gain of 3.6% as of 3:40 p.m. ET.
Cathie Wood added new Tesla shares to her family of ARK Invest mutual funds. Tesla stock ended the day slightly higher yesterday, and that momentum continued today after news of Wood's purchases surfaced. But there was news from the company itself that also helped boost confidence today.
Reports that the end of that supply deal earlier this year ended the relationship were met with denials from both Musk and BYD representatives. Musk took to social media to say, "That media report is false. Relations between Tesla and BYD are positive," reports Reuters. BYD also stated that the reports of the end of the supply agreement weren't accurate.
Tesla produces its own batteries for some of its vehicle manufacturing but also utilizes outside suppliers. The relationship with BYD is somewhat complex as Tesla works to grow its EV business in China where BYD dominates the market.
An end to their battery-supply relationship could have been taken as the sign of a demand slowdown for Tesla. The outright denial by both parties has investors following Cathie Wood's lead today by buying shares in Tesla.
What do you think about the relationship between Tesla and BYD？
$Tesla (TSLA.US)$ $BYD Company Limited (002594.SZ)$
An end to their battery-supply relationship could have been taken as the sign of a demand slowdown for Tesla. The outright denial by both parties has investors following Cathie Wood's lead today by buying shares in Tesla.
What do you think about the relationship between Tesla and BYD？
$Tesla (TSLA.US)$ $BYD Company Limited (002594.SZ)$
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