What happened
Shares of Tesla (TSLA +2.45%) were gaining ground today, on seemingly no company-specific news. Instead, investors may be pushing the electric vehicle (EV) stock higher on positive comments about the EV industry from Volkswagen's CEO. Additionally, investors had a generally optimistic view of stocks today following the release of the Federal Reserve's minutes from its latest meeting.
The EV stock was up by 3.9% as of 11:31 a.m. ET.
So what
First, Tesla investors may be processing comments made by Volkswagen CEO Herbert Diess, who told CNBC this morning that the EV outlook is "very good."
Image source: Tesla.
Volkswagen is focused on ramping up its EV production in the next few years and Diess said that there's "high demand in Europe and also in the United States" for EVs.
Tesla's stock could be getting a slight lift today as investors apply Diess' comments to the entire EV industry.
Additionally, Tesla investors may be generally optimistic about the stock as the broader market was rising today. Yesterday, the Federal Reserve released the minutes from its June meeting and while it indicated that a 50- or 75-basis-point hike is "likely to be appropriate" at its next meeting, investors appeared to have already factored in that increase. Investors took the comments in stride and pushed up the Nasdaq Composite by 1.7% this morning.
NASDAQ: TSLA
Key Data Points
Now what
While Tesla's gains today are good, investors should also brace for more share price swings in the short term.
Investors are still reacting to sky-high inflation, rising COVID-19 cases in China that could hamper Tesla's vehicle production, and growing fears about a potential recession. All of which means that Tesla investors should understand that small daily gains in the market can quickly be erased.
