Tesla's stock price surged nearly 7%, what big move did Musk make again?

Affected by the intense competition in the electric vehicle industry, Tesla's stock price fell by about 1.4% on Monday. However, after Tesla executives introduced the latest progress of the Tesla Semi truck on Tuesday, the company's stock price soared by over 6.6%.

On Tuesday overnight, Tesla outperformed the seven sisters in the US stock market, rising by 4.1% at the beginning of the midday session, and ultimately closing up by 6.66% to $186.60 per share.

Analysis indicates that part of this increase is attributed to some positive developments for Tesla, such as the introduction of the Semi truck and plans for a new factory. In addition, positive news from Chinese electric vehicle peers, such as XPeng announcing better-than-expected first-quarter financial results, also contributed to the rise in Tesla's stock price.

Semi Truck Makes Breakthrough, Expected to be Delivered by 2026

It is reported that a Tesla executive introduced the Semi truck at a clean energy transport expo in Las Vegas, claiming that thanks to Tesla's fastest charging technology, the Semi truck can travel 1000 miles within 24 hours. At the same time, Tesla confirmed that deliveries of the Semi truck are expected to begin by 2026. To achieve this, they plan to establish a new factory in Nevada with a target annual production capacity of 50,000 vehicles.

Tesla executive Dan Priestley also shared some details about the truck. He mentioned that in terms of performance, the long-range version of the Tesla Semi can travel up to 500 miles when fully loaded (i.e., with the vehicle fully loaded with cargo, reaching a total weight of 23,000 pounds). The standard version of the Tesla Semi can travel 300 miles without cargo (vehicle weight of 20,000 pounds).

Furthermore, Tesla has conducted actual tests with 35 Semi trucks for PepsiCo's FritoLay division. During the tests, these trucks completed long-distance runs of 250 miles and 520 miles, with a maximum payload of 82,000 pounds allowed by law. Thanks to fast charging technology, these trucks can travel over 1000 miles within 24 hours.

So far, these test fleets have accumulated 3.5 million miles. Tesla has also used these Semi trucks to transport batteries from Nevada to its main factory in Fremont under extreme weather and mountain conditions.

Positive News from Chinese Peers Boosts Tesla's Stock Price

Due to intensified industry competition, electric vehicle prices continue to decline, squeezing companies' profit margins, and any "bad news" from car companies directly affects their stock prices.

For example, previously, Li Auto announced lower-than-expected financial results. Li Auto's second-quarter revenue expectations only increased by 6%, far below Wall Street's expectations. This indicates that intensified competition has led to price reductions for electric vehicles in the Chinese market. As a result, Li Auto's American depositary receipts fell by 13% on Monday. Tesla was also affected by its Chinese peers, with Tesla's stock price falling by 1.4% the day after Li Auto announced its financial results Price reduction is a problem that Wall Street needs to face. CFRA analyst Aaron Ho downgraded the rating of Li Auto from hold to sell, stating, "We hold a neutral view on the fundamentals of Li Auto, mainly because of the intense competition in the electric vehicle market, which limits the increase in average selling price, while research and marketing expenses remain high."

However, the news brought by Chinese electric vehicle peers is not all bad. Among the new forces in car manufacturing, XPeng Motors announced its first-quarter financial report before the US stock market opened, with losses less than expected by Wall Street, an increase in gross profit margin, revenue better than market expectations, optimistic performance guidance, and overall unexpectedly good performance. As a result, XPeng's stock price surged nearly 22% in early trading and closed up 5.9%. Some analysts pointed out that as a result, Tesla's stock price also rose significantly in overnight trading on Tuesday.

So far this year, the stock prices of Li Auto and XPeng Motors have fallen by about 44% and 40% respectively, while Tesla's stock price has fallen by about 25%