What happened
Shares of Tesla (TSLA 1.85%) were up as high as 4.8% this morning before cooling off by the afternoon. As of 12:37 p.m. ET on Tuesday, the stock was still holding a 0.70% gain on the day, slightly trailing the broader market. Year to date, the stock has fallen 37%.
Wolfe Research released its findings on the potential impact of the electric vehicle incentives included in the Inflation Reduction Act. Plus, Tesla is looking to add almost 7,000 jobs, despite weakening auto sales across the industry year to date.
So what
Wolfe Research analyst Rod Lache said that the Inflation Reduction Act (IRA) could benefit the larger EV makers such as Tesla. A week ago, Goldman Sachs labeled Tesla and General Motors as its favorite picks in the auto space due to the catalysts with the IRA.
It's also a positive indicator for Tesla's near-term demand that it is looking to hire thousands of employees. The job listings reportedly represent a 50% jump from June. Most of the job openings are spread across its factories in the U.S., with over 200 openings listed for its China factory in Shanghai.
Now what
Tesla said that it delivered over 343,000 vehicles in the third quarter, which missed estimates and sent the stock down at the start of October. Investors initially saw the delivery miss as a sign that Tesla's demand was plunging with the rest of the industry. But it noted that there were cars still in transit at the end of September that skewed the delivery total downward.
Investors will get more clarity on demand when Tesla reports third-quarter results on Wednesday, Oct. 19.
