Tesla stock appeared to be on the rise, breaking a two-day slump in early premarket trading on Wednesday. The electric-vehicle maker saw its shares increase by 1.1% to $182.77, outperforming futures on the S&P 500, which gained 0.3%, and Nasdaq Composite futures, which were up 0.6%.
Price War in China Intensifies
The recent stock movement follows an intensified price war in China. Tesla competitor BYD, backed by Warren Buffett’s Berkshire Hathaway, slashed the price of an updated version of its entry-level Seagull car by 5%. This move came shortly after Tesla provided Chinese car buyers with a $1,000 insurance subsidy on purchases of certain models before the end of March.
Production Halt in Berlin Continues
Meanwhile, production at Tesla’s Berlin plant remains at a standstill following a recent fire near the factory. Environmental groups, concerned about the impact on local forests and wildlife, had previously clashed with Tesla during the factory’s construction.
CEO Elon Musk condemned the suspected arson as “dumb,” emphasizing the importance of electric vehicle production over fossil-fuel vehicles for environmental goals.
Market Movement and Competition
In addition to Tesla, other companies in the electric vehicle sector also saw movement in their stock prices. NIO’s stock rose by 1.5% in early trading, while Ford Motor shares increased by 0.7%. General Motors, Lucid, and Rivian also experienced slight gains in premarket trading.
Despite the recent uptick, Tesla’s stock is still below its 52-week high of $299.29, set last summer. With a trading volume of 119.66 million shares at Tuesday’s close, the stock remains slightly below its 65-day average volume of 109.67 million shares.
