Shares of Tesla, the electric vehicle pioneer, saw a 4.2% jump in the morning session following a positive report on nonfarm payrolls for September 2024. The Bureau of Labor Statistics reported an increase of 254,000 jobs, surpassing the consensus estimate of 150,000. The unemployment rate also came in at 4.1%, slightly lower than expected. This news supported the Fed’s view of a “soft landing” for the economy, indicating that inflation can be controlled without causing significant harm.
Investors may be anticipating Tesla’s upcoming Robotaxi Day event on October 10, 2024, where the company is expected to discuss advancements in artificial intelligence, self-driving technology, and plans for a robotaxi service. Despite the initial spike, Tesla’s shares eventually settled at $248.88, up 3.4% from the previous close.
It’s worth noting that Tesla’s stock has shown significant volatility over the past year, with 27 moves greater than 5%. While today’s movement suggests the market views the news positively, it may not fundamentally alter its perception of the company. Recent reports of a recall of up to 27,000 Cybertrucks in the U.S. due to “rearview camera image delays” and the removal of a specific version of the Model 3 from Tesla’s website could pose challenges for the company in meeting expectations in the coming months.
Despite these updates, Tesla’s stock is up 0.2% since the beginning of the year and is trading near its 52-week high. Investors who invested $1,000 in Tesla’s shares five years ago would now see a return of $16,132. Keeping an eye on developments in the companies you’re interested in can provide valuable insights into their performance and potential future movements. By adding them to your watchlist, you can receive timely updates straight to your inbox.