The new decade hasn’t been particularly easy for Elon Musk’s Tesla especially in the stock market. Just today, the company’s stocks are seen accelerating through the competition after a harsh crash last week.
Last week, the entire stock market felt a massive hangover and a painful ache brought by concerns about the virus. However, this week appears to be less painful as stocks are seen recovering in sessions.
Tesla, the electric car manufacturer based in California isn’t exempted from the struggles of the market. In fact, the company is highly susceptible as China sits as one of the biggest automotive markets.
On top of that, the company has its factory in Shanghai, China, making it an important location for it.
In the past, Elon Musk’s Tesla has seen a massive surge in prices this 2020. The main reason for then is the rising case of fear of missing out of its investors.
Then, following that, the company’s shares fell as the hype dies down. And today, stock prices for TSLA are seen gaining in the stock market due to an unlikely factor.
Why Its Stocks Are Rallying
Looking at the bigger picture, it seems that the electric vehicle producer’s stocks are running against fundamentals. First, the company is facing a problem with its leaked Tesla and SpaceX files.
Aside from that, the company recently had one of its showrooms close down. And to make matters sound even worse, experts are warning against buying TSLA stocks.
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So, what caused the company’s shares to rise? The answer is General Motors (GM). Elon Musk’s Tesla has another big competitor in the stock market and automotive industry, and that’s General Motors.
General Motors recently proposed an EV Day to convince Wall Street that it has gas to run against Tesla. However, its effort fell short as investors don’t appear convinced.
The idea that flopped raised the spotlight on Tesla shares in the market, pushing it against fundamentals.