Why Tesla Stock Accelerated Wednesday

adze (NASDAQ:TSLA) was Wednesday’s winner among S&P 500 index winners, capturing the headline with a more than 4% increase in the day’s share price. There was little news of note that drove the stock forward; rather, it seemed that bargain hunting and a somewhat cryptic tweet from CEO Elon Musk propelled it higher.

A maturing market

While it’s good to be a leading company in an industry where times are frothy, the downside is that such a business can be a poster child when the bad days roll around.

Sentiment about the electric vehicle (EV) sector is still bleak in many quarters as it matures and the novelty of EVs flying our streets wears off. Economic concerns in recent months, mainly related to inflation, have fueled this, leaving high-end suppliers like Tesla vulnerable.

Aggressive price cuts by the company and rivals have helped limit the damage, but the EV sector isn’t currently the darling it was earlier this year.

Star investor Warren Buffett famously said that investors should be bold when others are fearful, and that sentiment may have had something to do with Wednesday’s tesla pop. It was a swing stock during the summer and has dropped significantly from its mid-season price. For any large, publicly traded company, there are always plenty of bargain hunters looking for bargain prices.

The rise of the robots

Additionally, more than a few Tesla watchers have certainly been heartened by Musk’s latest statements on X (formerly Twitter). Responding to a tweet on Tuesday evening asking how he was feeling, the company’s CEO replied — apparently while leaving Tesla’s offices in Palo Alto, Calif. — “Mostly good, some bad.”

While they were tight-lipped on specifics, Musk added a note of excitement, saying, “The future will be wild. There will be so many robots…” Tesla is one of the most active developers of robots, and the market probably saw this as a reaffirmation of that commitment.

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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.

Why Tesla Stock Accelerated Wednesday was originally published by The Motley Fool