Tesla to Spend More Than $500 Million to Expand Supercharger Network, Musk Says. The Stock Rises

Dow Jones05-10

Tesla stock was rising in premarket trading Friday after CEO Elon Musk said the electric-vehicle company would be spending "well over" $500 million to expand its Supercharger network.

In a post Friday on his social media platform X, Musk said Tesla would be creating "thousands of NEW chargers this year. That's just on new sites and expansions, not counting operations costs, which are much higher."

The announcement from Musk follows reports last week that said Tesla was cutting its Supercharger team of around 500 people.

The gains for Tesla Friday put the stock on track to halt three consecutive down days.

Shares rose nearly 1% in premarket trading to $173.64, while S&P 500 and Nasdaq Composite futures both were rising 0.4%.

Coming into Friday, Tesla stock has fallen about 5% for the week with drops on Tuesday, Wednesday, and Thursday.

Investors have had to deal with a little bit of everything this week. On Thursday, a former Tesla employee wrote on LinkedIn that recent layoffs could erode the company's culture. On Wednesday, Reuters reported that the Justice Department was looking at Tesla's marketing of its driver-assistance systems. On Monday, the National Traffic Highway Safety Administration sent a letter to Tesla requesting information about 20 vehicles that might have been involved in accidents with driver-assistance systems turned on.

There's been a lot to digest, resulting in the stock giving up some recent gains. Through Thursday, Tesla shares were up 21% from the 52-week closing low reached on April 22, just before Tesla reported better-than-feared earnings the next. That has left shares down about 31% this year.

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Comments

  • Guavaxf30
    05-10
    Guavaxf30
    Clearly a sign of an unstable mind.  And he is the same guy asking to be paid 48 b (or 52 b depending on which report you read) for excellent performance.  How to invest in such a dysfunctional company?
  • a4xrbj1
    05-10
    a4xrbj1
    Short, short, short and make easy money. This company is doomed, they have serious operating cash flow problems and their demand is falling even below the disastrous Q1 results. No answer from Musk who wants an additional new 10% of shares (310 million) for destroying Tesla.
    • CashCity: 

      Q2 going to be even worse! Tesla might go below $100 and do a reverse stock split

  • CashCity
    05-10
    CashCity
    Beware of Tesla! After getting rid of its entire supercharger team now it's wasting $500M to hire new people to finish the job!
  • Guavaxf30
    05-10
    Guavaxf30
    Hmmn.  Spending $500 mil after firing 500 staff who formed the entire Supercharger team.  How do we understand this?
  • King19
    05-10
    King19
    😂 another tweet n clueless just buy in. Even if it is true, do you know what how many and the profit?? No wonder the stock market guru didn't even buy a single Tesla
  • Dr Rck
    05-10
    Dr Rck
    Isnt this expected, or new?
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