Elon Musk has a reputation of a man who gets things done. It is a deserved reputation as his achievements have been quite astounding. Whether it is in space with Starling or SpaceX, on the roads with Tesla, or digitally with AI, Musk consistently takes new ground. Perhaps then it should not be a surprise to see the latest announcements from Tesla. Does it demonstrate that Tesla is going to dominate the EV market?

Firstly, Elon Musk has announced that the new Tesla drive train will leave 50% less of a factory footprint, cost $1000 less, and then it will not use rare earth materials. Tesla’s Colin Campbell stated that due to health and environmental concerns mining rare earths, the next drive unit would use a permanent magnet that does not use rare earths at all. This announcement sent the shares of China’s JL Mag Rare-Earth Co and Jiangsu Huahong Technology Stock Co tumbling as reported by Bloomberg.

Chart

Bloomberg also reported that Campbell stated that Tesla had designed its own transistor package that uses 75% less Silicon Carbide which is a big win as it is expensive. Tesla also sees the chip shortage is behind them, aims to make a new car every 45 seconds, wants to spend $175 billion to hit 20-man vehicle production and could launch two new models to help achieve that aim.

Tesla’s share price

The current share price of Tesla is around 50% down from the 2021 peak of over $400. It is contained underneath the 100 and 200 EMA. However, do any further dips lower simply offer good value buying opportunities for the long term? Is Tesla, with all the drive of Elon Musk behind it, going to innovate, add efficiency, and expand its models to a new EV-hungry world? Or will mainstream car manufacturers snap up more of the EV market share? Tesla is one share to watch, particularly, on any drops lower into the $125 region.

Tesla


Learn more about HYCM

Share: Feed news

Our products and commentary provides general advice that do not take into account your personal objectives, financial situation or needs. The content of this website must not be construed as personal advice.

Recommended content


Recommended content

Editors’ Picks

EUR/USD stays below 1.0700 after upbeat US PMI data

EUR/USD stays below 1.0700 after upbeat US PMI data

EUR/USD stays on the back foot and trades in negative territory below 1.0700 as the US Dollar benefits from upbeat data in the American session. S&P Global reported that the economic activity in the US private sector continued to expand at a robust pace in June.

EUR/USD News

GBP/USD drops to fresh multi-week low below 1.2650

GBP/USD drops to fresh multi-week low below 1.2650

GBP/USD remains under bearish pressure and trades at its lowest level since mid-May below 1.2650. The stronger-than-forecast Manufacturing and Services PMI data from the US helps the USD hold its ground and causes the pair to stretch lower.

GBP/USD News

Gold drops below $2,340 as US yields rebound

Gold drops below $2,340 as US yields rebound

Gold loses its traction and trades deep in the red below $2,340 in the second half of the day on Friday. The benchmark 10-year US Treasury bond yield pushes higher following the upbeat PMI data from the US, weighing on XAU/USD.

Gold News

Bitcoin retraces to crucial support

Bitcoin retraces to crucial support

Bitcoin price encounters resistance at weekly highs before retracing to seek support at a crucial level, while Ethereum and Ripple align closely with Bitcoin's movements, gearing up to surpass resistance barriers and embark on upward rallies.

Read more

Week ahead – US PCE inflation the highlight of a relatively light agenda

Week ahead – US PCE inflation the highlight of a relatively light agenda

Core PCE inflation to test bets of two Fed rate cuts in 2024. Yen awaits BoJ Summary of Opinions, Tokyo CPI. Canadian CPI data also enters the spotlight.

Read more

Forex MAJORS

Cryptocurrencies

Signatures