Tesla's stock has experienced a volatile trading session on December 20, 2024, as it reversed earlier losses to trade higher. This turnaround comes amid a week marked by significant fluctuations, including an 8% drop on Wednesday, which was the worst day for Tesla shares since before Donald Trump's presidential election victory. The initial decline was attributed to profit-taking following a post-election rally, driven by investor optimism over Tesla's potential benefits from CEO Elon Musk's close ties to the president-elect. Despite the volatility, Tesla shares have managed to post a weekly gain, reflecting investor confidence in the company's long-term prospects, particularly in the autonomous vehicle sector.
The broader electric vehicle (EV) market also received a boost from a recent deal between Hyundai and Kia, which sparked a 4% surge in EV stocks. This development has contributed to the positive sentiment surrounding Tesla, as the deal signals optimism for the entire EV sector. Investors are interpreting such strategic partnerships as a sign of growth potential, further fueling interest in EV-related stocks. Additionally, supportive government policies and trends towards cleaner energy continue to bolster the outlook for the EV industry, adding to the momentum behind Tesla's stock recovery.
The Graniteshares 2x Long TSLA Daily ETF (TSLR) is currently priced at $52.23, reflecting a 1.91% increase from the previous close.